Quick Answer: Freedom Debt Relief is a for-profit debt settlement company. To evaluate whether they’re right for you, I’d encourage you to check their complaint history with the CFPB, read their reviews on Trustpilot, and check their enforcement history with federal and state regulators. Here’s how to do each of those.
Before You Read This: I want to be upfront about what this page is and isn’t. I’m not an investment advisor, and I’m not rendering a verdict on Freedom Debt Relief. This is a research guide — I’m showing you where to look so you can reach your own conclusions based on current information.
If you find something in the public record that concerns you, post it in the comments below. If you’re evaluating their contract, use my free Contract Decoder tool.
If you represent Freedom Debt Relief and something here is inaccurate, contact me and I’ll review it promptly.
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Who Is Freedom Debt Relief?
An educated consumer is our best customer.— Sy Syms
New here? My Ultimate Consumer Guide to Checking Out a Debt Relief Company walks through how to vet any debt relief company before you sign anything.
Freedom Debt Relief is a for-profit debt settlement company. Rather than repeat what they say about themselves here, I’d encourage you to read their own website and state business filings — that way you’re seeing it directly from primary sources, not filtered through me.
Step 1: Check Their Credentials
For a debt settlement company, here’s what I’d verify before going any further:
- BBB Profile: Check their Better Business Bureau profile — look at the rating, years in business, and especially the complaint history and how they responded.
- AFCC Membership: The American Association for Debt Resolution (AADR, formerly AFCC) is the industry trade group for debt settlement companies. Check whether Freedom Debt Relief is listed as a member and what that membership requires.
- State Licensing (NMLS): Debt settlement companies must be licensed in each state where they operate. Check their NMLS Consumer Access profile to verify their licensing in your state.
- State Registration: Many states require debt settlement companies to register with the state banking or financial services regulator separately from NMLS. Search “[your state] debt settlement company registration” to find your state’s lookup tool.
A Note on BBB Grades: A high BBB grade doesn’t necessarily mean a company is right for you — it means they respond to complaints filed through the BBB. Read the actual complaint text and the company’s responses. That’s the useful part. See my full guide to what BBB letter grades actually mean →
Step 2: Check Consumer Complaints
The Consumer Financial Protection Bureau maintains a public database of complaints filed against financial companies. You can search for Freedom Debt Relief directly:
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Search Freedom Debt Relief’s complaint history in the CFPB database →
When you’re reading complaints, look for:
- What the complaints are about — fees, program performance, communication problems?
- How the company responded — did they resolve issues or just close them?
- Whether the same issue appears repeatedly — a pattern matters more than a single complaint
- The ratio of complaints to customers — a large company will have more complaints in raw numbers
Step 3: Read Their Trustpilot Reviews
You can find Freedom Debt Relief’s Trustpilot reviews here. A few things to keep in mind as you read:
How to read Trustpilot like a pro: My complete guide to spotting red flags in Trustpilot reviews breaks down exactly what to look for — including how to identify review solicitation campaigns and reputation management tactics.
- Pay attention to what the 5-star reviews are actually about. If they’re praising a friendly phone call or easy signup — that’s interaction quality, not program performance. Compare those against reviews that specifically mention outcomes: debts settled, program completed, fees as promised.
- Read the 2- and 3-star reviews carefully — these tend to be the most honest, from people who had mixed experiences and aren’t trying to tear the company apart
- Look at how the company responds to negative reviews — a defensive or dismissive response tells you something
- Check the review dates — a flood of 5-star reviews in a short period can indicate a solicitation campaign
Step 4: Check Their Legal and Enforcement History
For-profit debt settlement companies are subject to enforcement actions from federal and state regulators. This is one of the most important research steps — and one that most people skip. Here’s where to look:
- CFPB Enforcement Actions: Search the CFPB’s enforcement action database for the company name. The CFPB has enforcement authority over large debt settlement companies.
- FTC Actions: The FTC publishes all enforcement cases — search for the company name or its principals. The FTC’s Telemarketing Sales Rule covers how debt settlement companies can charge fees and what they can promise.
- State Attorney General: Search “Freedom Debt Relief attorney general” or “Freedom Debt Relief settlement” — many enforcement actions happen at the state level and don’t make federal headlines.
- Federal Court Records: CourtListener searches 1.3 billion federal court documents for free — no registration required. For the official PACER system with complete case filings, see my guide to using PACER.gov.
Context Matters: A company that has faced enforcement action isn’t automatically disqualified — what matters is what the action was for, whether they resolved it, and whether the behavior continued. A company that’s never faced any scrutiny in a highly regulated industry may just not have been looked at yet.
Step 5: Ask the Right Questions Before You Enroll
Before signing anything: Run their contract through my free Contract Decoder tool. Paste it in and get a plain-English breakdown of what you’re agreeing to.
Debt settlement works differently from other debt relief options, and the fee structure matters a lot. Before you commit, get clear answers — in writing — to these questions:
- What is the total cost — monthly fees, service fees, and any enrollment or setup fees — over the full length of the program?
- When exactly are fees charged — before a debt is settled or after? (The FTC’s Telemarketing Sales Rule requires fees to be charged after settlement for telemarketed services.)
- Which creditors do they have established relationships with, and which don’t participate?
- What happens to my credit during the program — and what’s the realistic timeline for rebuilding?
- What happens if a creditor sues me while I’m in the program? Does the company provide legal support?
- What percentage of clients who enroll actually complete the program and have all their debts settled?
Before You Commit: Debt settlement isn’t right for everyone. Run your situation through my Find Your Path tool to see whether debt settlement, bankruptcy, credit counseling, or another option fits your situation better. The right answer depends on your specific income, debt types, and goals.
Key Takeaways
- Verify credentials through BBB, AADR/AFCC membership, and NMLS state licensing before anything else
- Read CFPB complaints for patterns — volume matters less than what the complaints are actually about
- On Trustpilot, focus on reviews that describe program outcomes, not just the enrollment experience
- Check CFPB and FTC enforcement history — it’s public and it tells you a lot
- Get answers to the fee and completion-rate questions in writing before you sign
- The comments section below contains real experiences from real clients — read them
Want the full research playbook? My Ultimate Consumer Guide to Checking Out a Debt Relief Company covers every tool and source in this guide — plus detailed walkthroughs for reading BBB profiles, spotting Trustpilot red flags, and searching federal court records on CourtListener.
Frequently Asked Questions
Is Freedom Debt Relief a nonprofit?
No. Freedom Debt Relief is a for-profit company. This is worth understanding as you evaluate your options — for-profit debt settlement companies charge fees based on the amount of debt enrolled or the amount settled, whereas nonprofit credit counseling agencies typically charge modest monthly fees capped by state law.
How do I file a complaint against Freedom Debt Relief?
You can file a complaint directly with the CFPB at consumerfinance.gov/complaint. You can also file with your state attorney general’s office and the BBB. Filing with the CFPB creates a public record and requires the company to respond within 15 days.
How does debt settlement work, and what does Freedom Debt Relief do?
In a debt settlement program, you stop making payments to creditors and instead deposit money into a dedicated savings account. When enough has accumulated, the company negotiates with your creditors to accept a lump-sum payment for less than what you owe. The difference between what you owed and what was accepted may be taxable income. The tradeoff is significant credit score damage during the program and the risk that some creditors may sue before a settlement is reached.
Is Freedom Debt Relief legitimate?
Freedom Debt Relief is a licensed, registered company operating in the debt settlement industry. Whether they’re the right fit for your situation is a separate question from whether they’re legitimate. Use the research steps above — CFPB complaints, enforcement history, Trustpilot patterns, and the five questions in Step 5 — to make that evaluation yourself based on current information.
Should I use Freedom Debt Relief to get out of debt?
That depends entirely on your situation. Debt settlement can work for some people — particularly those with significant unsecured debt who can’t afford minimum payments. But it’s not the right fit for everyone, and it comes with real tradeoffs around credit, potential lawsuits, and tax consequences. I’d encourage you to run your situation through my Find Your Path tool before committing to any program.
Share Your Experience with Freedom Debt Relief
If you’ve worked with Freedom Debt Relief — as a client, a former employee, or someone who looked into them and decided not to enroll — I’d encourage you to share your experience in the comments. Your perspective helps others make a more informed decision.
To share your experience: Scroll to the bottom of this page — the comments box is there.
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
Browse all Debt Settlement Companies reviews, or see the full Company Reviews directory.
