Freedom Debt Relief, Chase Bank, & Nonprofit Credit Counseling

In a recent story that a reader brought to my attention, Freedom Debt Relief did a good thing and fully refunded a disgruntled California couple the $3,290 fee they paid Freedom Debt Relief for advanced fee debt settlement services after they got sued and Chase Bank said they would not work with Freedom.

A double pat on the back to Freedom for giving the refund. That was the smart and right things to do.

That’s not the part of the original story, here, that caught my eye.

It was the bit about Chase Bank said they would not work with a for-profit debt settlement company but would work with non-profit credit counselors.

But a year into the agreement with Freedom Debt Relief, the Theriaults got a call from Chase, one of their two creditors.

“They contacted us and said ‘we will not deal with Freedom Debt,’” Sherry Theriault recounted.

Chase sent ConsumerWatch a statement confirming it “does not work with debt-settlement companies.”

The company said it will work with non-profit credit counseling agencies.

Frankly, the position of Chase Bank stinks and not one I find to be consumer friendly. One could argue that since Chase Bank exercises more control over credit counseling groups by controlling their funding that they would rather steer the consumer that way rather than let the consumer find independent help.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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