Moving forward, Freedom vowed to cooperate with the bureau. "In resolving the case, we have agreed to make some changes to our disclosures and policies to enhance our program, many of which were implemented when the case was first filed," the company said. The settlement bars Freedom from engaging in such conduct in the future.įreedom issued a statement saying that it has worked closely with the bureau over the past year and a half to address these concerns, provide insights into the debt-relief program and continue to serve clients. The bureau alleged Freedom, one of Arizona's largest employers, sometimes charged consumers without settling their debts as promised, charged customers after having them negotiate their own settlements with creditors and misled customers about its fees and ability to negotiate on behalf of consumers to reduce debts. The complaint also named Andrew Housser, the company's co-CEO and co-founder, whom the bureau said actively oversaw such practices. The allegations included charging consumers fees in advance of work completed and failing to inform them of their right to receive unused money deposited with the company. A debt-relief company has been ordered to pay $20 million in restitution to customers and a $5 million fine to the government over its marketing and business practices.įreedom Debt Relief, with a large office in Tempe, agreed to pay the restitution and the civil penalty for various infractions, without admitting guilt, as part of a settlement with the federal Consumer Financial Protection Bureau.
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