Notably, Freedom Debt Relief purportedly misrepresented those fees charged to consumers. The CFPB alleged that Freedom Debt Relief failed to provide consumers with notice that, if consumers withdrew from the debt settlement programs, they would receive their deposits back, less any fees incurred. According to the complaint, Freedom Debt Relief provided consumer debt relief through a debt settlement program in which consumers deposited funds into an FDIC-insured bank, and the company negotiated with consumers’ creditors to settle their debts. The CFPB filed its first amended complaint on June 1, 2018. On November 8, 2017, the CFPB filed an action against Freedom Debt Relief and Andrew Housser, the company’s co-founder and co-CEO. Finally, Freedom Debt Relief is required to pay a $5 million civil money penalty, of which $439,500 is to be paid to the FDIC according to a different consent order.

The company is required to pay $20 million to the Consumer Financial Protection Bureau (CFPB) for restitution and submit a comprehensive redress and compliance plan to the CFPB identifying affected consumers and otherwise complying with the stipulated judgment. Freedom Debt Relief is also required to provide certain disclosures regarding negotiations with creditors and consumers’ entitlement to settlement funds upon withdrawing from the debt-relief program. Under the stipulated judgment, Freedom Debt Relief, LLC (Freedom Debt Relief is not related to Freedom Mortgage Company) is enjoined from engaging in deceptive conduct and charging fees for non-settlement resolutions with consumers regarding debts that the company agreed to negotiate. On July 9, 2019, the United States District Court for the Northern District of California entered a stipulated final judgment and order in case number 17-cv-06484, Consumer Financial Protection Bureau v.

Andrew housser