Freedom Debt Relief is the US debt resolution company. Currently based in San Mateo, California and is a wholly owned subsidiary of Freedom Financial Network, a financial services company headquartered in San Mateo. The company claims that it has more than 600 employees.
Video Freedom Debt Relief
Company history
The company was founded in 2002 by Andrew Housser and Bradford Stroh. Both are graduates of the Stanford Graduate School of Business.
Companies negotiate on behalf of owed consumers who are experiencing financial hardship in order to avoid bankruptcy (Chapter 7 or Chapter 13) by paying off their unsecured debts at a discounted price for what is actually owed. Companies primarily serve consumers where debt consolidation or home refinancing is an unwanted or unavailable option. They also serve those who can not afford the minimum payment of credit card or payment required in credit counseling.
With the passing of the Prevention of Bankruptcy Abuse and the Consumer Protection Act and the 2007-2009 financial crisis, debt removal options for consumers declined significantly both for bankruptcy and mortgage refinancing, increasing demand for debt settlement and resolution.
On November 4, 2009 Andrew Housser and Robert Linderman, general counsel, participated as a panelist in the Federal Trade Commission's public forum on "Amendment of Debt to Telemarketing Sales Regulations." The forum addresses the proposed cost regulations and rules for eliminating misleading telemarketing and harassing debt relief services. In a letter to FTC Linderman declared in the first nine months of 2009 alone, Freedom Debt Relief successfully completed about 40,000 accounts by accumulating more than $ 206 million of unsecured debt with savings to consumers in excess of $ 120 million. On November 11, 2009, the company announced it has set up more than $ 500 million in consumer debt since its inception.
Working with nearly 100,000 clients since 2002, the company reached $ 1 billion in savings for their customers in December 2010. They did this by negotiating a settlement on 188,000 individual creditor accounts for its clients to become the country's first debt resolution firm to reach $ 1 billion in the cumulative debt has been settled for the client. Housser was quoted as saying "Achieving $ 1 billion in debt settled - not just offering, but completion completed - for consumers is a positive proof of FDR's ability to help individuals who are in serious debt.From a humble beginning, FDR has retained its shape a single commitment to save as much money as possible for every client who switches to a company for debt relief. "
Maps Freedom Debt Relief
Regulatory & amp; Legal History
Freedom Debt Relief has played an important role in promoting consumer protection laws and regulations. In 2009, Freedom Debt Relief contributed and supported the transfer of federal regulatory measures that brought additional consumer protection to industry *. During the drafting of the new regulations, the Federal Trade Commission received testimony from Freedom Debt Relief clients from all countries including California, Oregon, Texas, Wisconsin, Michigan, Ohio, and Colorado.
At the state level not all countries require licensing, but Freedom Debt Relief has supported efforts to create licensing terms in Delaware, Iowa and Minnesota and became the first company to be licensed for settlement services in those countries. In addition to Delaware, Iowa and Minnesota, Freedom Debt Relief is also currently licensed to do business in the following countries: Maine, Kentucky, Utah and Colorado.
Since the creation of the current regulation there are a number of legal disagreements between the regulator and debt settlement industry. The legacy of the unregulated debt settlement industry regulates some legal battles between Freedom Debt Relief and several states. To close this legal standing, Freedom Debt Relief agrees to settle with the countries that have filed a complaint during the pre-regulatory period. In each case, the complaint was resolved with Freedom Debt Relief found free of any errors or obligations. As part of several settlements, the company does offer replacement funds to the state (New York for example) and a limited number of individuals involved in the complaint.
Accreditation
- Accredited member of the Settlement Companies Association (TASC)
- An accredited member of the American Fair Credit Council (AFCC)
Awards
- The 2008 winner Ernst & amp; Young Entrepreneur of the Year for the Northern California region.
- Recognized as one of the Best Places to Work in 2008 by the San Francisco Business Times and Phoenix Business Journal
- Andrew Housser and Brad Stroh, named with the "40 Under 40" Silicon Valley/San Jose Business Journal list.
See also
- Debt
- Bankruptcy
- Credit Counseling
- List of financial topics
References
Source of the article : Wikipedia
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