Freedom Debt Relief Secures Funding to Advance Sales Reps

The following guest post is by Andrew Houser from Freedom Debt Relief. I asked him to provide us all with more information about his new approach at fronting sales representatives commissions while Freedom waits to collect the fees earned from consumers.

Upfront Affiliate Payments on No Advance Fee Programs: Giving Affiliates the Opportunity to Move Away From the Dark Side

While the majority of affiliates in the Debt Relief industry have either packed up and left town due to the FTC’s “advance-fee ban”, or shifted to selling advance fee programs through legal models or other loopholes, Freedom Debt Relief is now offering affiliates the ability to earn sizable upfront payments for selling their no advance fee program.  

When the new FTC regulations went into effect last October it became very difficult for front-end companies marketing and selling debt relief services to remain in business. The advance fee ban significantly delays revenue earned by debt relief providers, and those providers abiding by the advance fee ban have consequently had to delay payouts to their affiliates.

While the FTC Rule clearly benefits consumers, it has created a severe financial hardship for many of the best debt relief companies who chose the compliant path and for the affiliates selling their services… kind of ironic isn’t it? Unfortunately this resulted in many affiliates leaving the industry altogether, and many others trying to make ends meet by selling for advance fee “legal models” or other loophole models.

It is widely acknowledged that there are several debt relief providers and attorney networks operating outside of the FTC fee rules by continuing to charge advance fees. And in doing so, these providers have, to date, been able to pay their affiliates upfront fees, which is an enticing offer.

Many affiliates I speak with know that the advance fee loopholers they are working with are, at the very least, in violation of the spirit of the FTC regulations. They also recognize that working with these companies creates huge potential legal liability for their company and for themselves personally. Many chose this risky path, however, because they saw no other way to have an economically viable business in a no advance fee world. It’s not a great decision to have to make – expose business and self to tremendous legal liability or risk going out of business due to cash flow issues.

See also  Andrew Houser Praises the FTC for Telemarketing Sales Rules

One company that has developed a solution to this conundrum is Freedom Debt Relief. Freedom Debt Relief recently closed a significant round of capital financing to help it service clients and grow in the no advance fee world. What this means is FDR is now able to provide a significant upfront payment to its affiliates for enrolling clients. However, unlike the loopholers, FDR is not charging or collecting any advance fees from its clients in order to do so. Freedom Debt Relief operates a 100% no-advance fee debt relief program, which means they do not charge clients any fees until after FDR has successfully negotiated and received client approval for the resolution of the client’s debt.

The debt relief industry has changed significantly over the past year and my hope is that FDR’s new affiliate model encourages companies to have the courage (and financial foothold) to sidestep loopholes and exemptions and embrace the FTC Rules and the Advance Fee Ban.

So, move away from the dark side and stop selling advance fee programs that expose your business and your family to huge potential liabilities. Get paid upfront to sell a 100% no advance fee program – have peace of mind and earn the cash flow to not only maintain your business, but re-invest and grow your business.

10 thoughts on “Freedom Debt Relief Secures Funding to Advance Sales Reps”

    • These States had no problem getting his name right

      Colorado – Freedom Debt
      Relief, LLC, dba Freedom Debt, Freedom Debt Help, Freedom Debt Reduction,
      Freedom Debt Relief USA, Freedom Financial Network and Debt Resolution
      Partners, a California debt settlement
      company, refunded $509,582 to 558 Colorado
      consumers and paid $109,500 in investigation costs and penalties. It failed to
      comply with the law’s provisions on cancellation rights, cautionary disclosures
      and advertising, and was not registered when it contracted with Colorado consumers.

      Washington – Freedom Debt Relief must refund Washington
      consumers for all fees paid in connection with debts that weren’t settled or
      aren’t in active negotiation programs — those fees add up to $742,613 or more.

      Delaware – The Delaware
      Department of Justice announced today that a California
      debt management services company will pay $153,000 in restitution to 105 Delaware consumers with whom it conducted business
      without complying with Delaware’s
      debt management services statute. Freedom Debt Relief, LLC (“FDR”) had been
      providing debt management services in Delaware
      without first completing the licensing process

      California – THE PEOPLE OF


      New York
      – Attorney General Eric T. Schneiderman today announced a major settlement that
      will refund money to more than 5,000 New Yorkers across the state who were
      defrauded by a deceptive and harmful debt settlement company. Freedom Debt
      Relief, one of the country’s largest debt settlement companies, misled debt-saddled
      consumers about the amount of money they would save and the services it would
      provide, while reaping large profits in up-front fees. As part of the
      settlement, Freedom Debt Relief will pay $1.1 million to refund former
      customers, offer current customers hundreds of thousands of dollars in refunds
      if they withdraw from the program, and pay $100,000 in penalties to the state.

      – The Director of the Department of Finance concluded that Freedom Debt Reliefs
      conduct and business practices are evidence by the foregoing facts demonstrate
      a lack of fitness to engage in business activities authorized for a licensee. 

      Rhode Island
      – On November 15, 2007 the department issued order number 07-334 that directed
      respondent to cease and desist unlicensed debt management plan activities, the
      order included a notice to impose administrative penalties with respect to the
      unlicensed activities conducted by the respondent. FDR stopped accepting new
      customers in RI.


      Default having been entered against defendant, Freedom Debt
      Relief, LLC, on January

      14, 2011, for failure to answer or to otherwise respond to
      the complaint,

  1. Apparently their reps don’t have any problem or they wouldn’t be i’m guessing at least 10 times the size of their nearest competitor.

    • they put everyone in 40+ month programs… I’ve seen programs longer than 50 months. With their marketing team, they’ll soon put a release to explain the reasoning of program lengths that long

  2. Maybe some of the front ends lined up with the shady loophole models will start thinking about their clients and obeying the law while being able to make some money at the same time. 

  3. As Housser get off his private jet and sees Damon Day in the terminal comming of his Southwest fight, he says “You’ll never know shit about Massive, BITCH”


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