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CFPB v. Freedom Debt Relief, LLC

In July 2019, the Consumer Financial Protection Bureau (The Bureau) settled its lawsuit against Freedom Debt Relief, LLC.

The Bureau alleged that Freedom violated the CFPA by charging consumers without settling their debts as promised, charging consumers after having them negotiate their own settlements with creditors, and misleading consumers about the company’s fees and ability to negotiate directly with all of a consumer’s creditors. Under a Stipulated Final Judgment and Order entered by the U.S. District Court (N.D. Cal.), Freedom must pay $20 million in restitution to affected consumers and a $5 million civil money penalty.

Victim compensation

The CFPB contracted with RUST Consulting, LLC to administer payments for this case. This matter is now closed.

For more information on this closed case, contact us at Consumer Financial Protection Bureau, Attn: OCFO – Freedom Debt Relief, 1700 G Street NW, Washington DC 20552.

Important dates

October 2020 – December 2022: Distribution

More information about the case

Read the court order

Read the press release