Freedom Debt Relief Review 2026 — Fees, Results & Complaints

Source: Freedom Debt Relief — Facts; CFPB, July 9, 2019

What Is Freedom Debt Relief?

Freedom Debt Relief is a for-profit debt settlement company. It negotiates with your credit card issuers and other unsecured creditors to accept less than the full balance, while you save monthly deposits in a dedicated account. It says it has served more than 1 million clients since 2002, settled more than $20 billion of debt from over 5 million accounts, and currently has more than 200,000 active clients.

It is a founding, accredited member of the Association for Consumer Debt Relief (ACDR, the trade group formerly called the American Fair Credit Council) and is IAPDA-certified. It operates in 30 states plus Washington, D.C., and works with legal partners in 10 more.

Freedom Debt Relief at a Glance

Source: Freedom Debt Relief — Facts (company-reported figures, checked September 30, 2026); CFPB, July 9, 2019

How Freedom Debt Relief Works

1. Free consultation — A specialist reviews your debts, income and hardship to see whether you qualify.
2. Stop paying enrolled creditors — Instead, you make one monthly deposit into a dedicated account. Under FTC rules, you own that money, can withdraw it at any time and can quit without penalty.
3. Negotiation — Once enough is saved, Freedom negotiates with each creditor for a reduced lump-sum payoff. Freedom says more than 60% of clients get a first settlement within three months.
4. You approve every settlement — Nothing is paid without your sign-off.
5. Fee after results — Freedom can collect its fee (15%–25% of enrolled debt) only after a debt is settled, you agree to it and at least one payment is made under it.

Source: Freedom Debt Relief — Facts; FTC — Debt Relief Services & the Telemarketing Sales Rule

Source: CFPB — Bureau settles lawsuit against Freedom Debt Relief; CFPB — What is a debt relief program?

Pros and Cons

Source: Freedom Debt Relief — Facts; Freedom Debt Relief newsroom (Nov. 12, 2025); IRS — Topic 431

Freedom Debt Relief vs National Debt Relief

Both companies list a $7,500 minimum and fees of up to 25% of enrolled debt, and both report more than $20 billion in debt settled. The differences are track record, BBB grade and regulatory history:

Source: Freedom Debt Relief — Facts; National Debt Relief; BBB — National Debt Relief. See our National Debt Relief review.

Our Freedom Debt Relief Review Verdict

Freedom Debt Relief Review: FAQ

Is Freedom Debt Relief legit?

Yes. Freedom Debt Relief has operated since 2002, is a founding member of the Association for Consumer Debt Relief (ACDR) and reports more than $20 billion in debt settled. It also settled a CFPB lawsuit in 2019, so read its contract and fee disclosures carefully before you enroll.

What was the 2019 CFPB action about?

The CFPB alleged that Freedom Debt Relief charged fees before settling debts as required, charged fees on settlements it did not complete, billed consumers who negotiated with creditors themselves and misled consumers about fees. In July 2019 the company agreed to pay $20 million in restitution and a $5 million civil penalty.

How much does Freedom Debt Relief cost?

Fees run 15%–25% of the debt you enroll and are charged only after a debt is settled and you approve the deal. On $20,000 of enrolled debt, that is $3,000–$5,000. The bank that holds your dedicated account may charge its own account fees, so ask for that fee schedule too.

How long does the program take?

Freedom Debt Relief says programs run 24–48 months, with a 39-month average.

Will it hurt my credit?

Yes. You usually stop paying enrolled creditors, so late payments are reported and your scores fall. The CFPB notes that most negative information can stay on your credit report for seven years.

Which states does Freedom Debt Relief serve?

Freedom Debt Relief says it is available in 30 states plus Washington, D.C., and works with legal partners in 10 additional states. Confirm your state during the free consultation.