Freedom Debt Relief (FDR) is a company started in 2002 by two alumni of Stanford’s Business School. The goal of the Freedom company is to help people through difficult financial struggles by empowering them to greater success while reducing bad debts. The company operates out of San Mateo and Sacramento in California, and in Phoenix, AZ. FDR works with over 30,000 customers with a staff of approximately 500 employees.
Services
The company defines their services in broad terms. The list includes finding alternatives to filing bankruptcy such as credit counseling, debt management and consolidation. Getting out of debt is an ongoing theme throughout their website, but they also offer financial consultations. Each solution is designed to suit individual situations for the lowest possible cost.
Their introductory copy is somewhat vague, but their reputation is backed by membership in the TASC. The TASC group, ‘the association for settlement companies,’ works for consumers by negotiating with creditors on their behalf. As an organization with a large and growing membership, they have the potential to get better results when negotiating. Members of TASC must demonstrate ongoing compliance with the organization’s bylaws.
Who They Serve
The average Freedom Debt Relief customer is between the ages of thirty and sixty-five, and earns an income from $40,000 to over $100,000 per year. Almost half are married couples and all have begun making progress with their financial situation. When a customer joins FDR, they are considered part of Freedom’s Financial Network. Their progress is measured and most customers find themselves on their way to being debt free in a few years.
Affiliates
The difference customers will find when joining this organization is access to their affiliate program. The partner program is described as a strategic business relationship, one which offers profitable benefits to the affiliate and their clients. The business opportunity is intended for sales and marketing professionals or those willing to set up an extensive network to be successful.
Feedback
The program looks promising, but the company has received multiple complaints regarding inaccurate accounting and excessive fees. Complaints range from not paying creditors as promised to taking too long to negotiate with them. All of the complaining customers were required to pay up front and ongoing monthly fees in the hundreds, before they saw any results. Many experts advise against paying anything other than a percentage of what the company saves the debtor.
You Can Do It
The size of a person’s debt does not necessarily make a difference when it comes to negotiating with creditors. Credit card companies, auto loan providers and collection’s agencies want to get paid and they will work with their customers to accomplish this. Everyone has rights with regard to collection’s practices. However, accepting phone calls and working with lenders to settle or bring accounts current is simple.
The process starts by communicating with creditors whether they are calling about a single missed payment or several. Set up a plan to catch up at an affordable monthly rate. By taking care of debt problems, either on their own or through a professional organization, before they grow out of control, people can bring their accounts current and save their credit score.
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