Statement Regarding CFPB Settlement with Nation’s Largest Debt Relief Company

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FOR IMMEDIATE RELEASE: July 9, 2019

National Consumer Law Center contacts: Andrew Pizor (apizor@nclc.org) or Jan Kruse (jkruse@nclc.org)

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced the settlement of a lawsuit it had brought against Freedom Debt Relief, the nation’s largest debt settlement company. According to the CFPB, the company agreed to pay $20 million in restitution to affected consumers and a $5 million civil money penalty.  The original suit was filed in November 2017 and an amended complaint filed in June 2018.

The following is a statement by National Consumer Law Center attorney Andrew Pizor.

“I applaud the Consumer Protection Financial Bureau for taking action against Freedom Debt Relief. It is especially important that the settlement included restitution for aggrieved consumers. Debt settlement and similar programs offered by companies like Freedom often do more harm than good and turn out to be a waste of money. Consumers should talk to their creditors directly and do their own debt settlement negotiations, or they should talk to a qualified consumer bankruptcy attorney.”

Related Links

NCLC Issue Brief: Need Help with Debts? Don’t Get Burned by Scammers: https://www.nclc.org/special-projects/need-help-with-debts.html Spanish version: https://www.nclc.org/images/pdf/disaster-relief/disaster-relief-debt-coll-spanish.pdf

NCLC general information on debt relief services: https://www.nclc.org/issues/debt-relief-services.html

National Association of Consumer Bankruptcy Attorneys: https:www.nacba.org

2019-07-09T13:51:31-05:00