Consumer complaint received 2023-08-02
Company: FREEDOM FINANCIAL NETWORK
State: MD
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit repair services
Issue: Confusing or missing disclosures

Complaint:
On XX/XX/2023, there is a settlement fee in the amount of {$410.00} cents, with the entire amount of fees " owed '' being {$1000.00} cents which is nowhere to be found in writing just as my other accounts were not found with these fees associated to them in writing. Freedom Debt Relief Program states on page 9 under 5a. Settlement Fees : " It is understood that Exhibit A may not reflect the actual amount owed to each of your creditors as of the Effective Date. Accordingly, we may use other sources, such as your credit report or your creditors, to ascertain the exact amount owed to such creditor ( s ) as of the Effective Date. If we substantiate that the amount actually owed to any creditor on the Effective Date differs from the amount set forth on Exhibit A, Exhibit A shall be deemed restated with your consent as of the Effective Date, with any corrected amount ( s ) controlling for all purposes, including the payment of our fees. But on page 5 under 1a and 1b. " 1. FDR Commitment. 
a. Results First. You will not pay us any settlement fees until we reach a settlement. A settlement is the settlement, reduction, or other change to the terms of an enrolled debt. We will only charge you a settlement fee on an enrolled debt when a settlement is reached on that debt, you authorize the settlement, and at least one payment is made toward that settlement. See Subsection 5.a. below for a description of the timing of payment and amount of settlement fees. 
b. Program Guarantee. Our objective is to help you pay less than you currently owe on your enrolled debts over the life of your participation in the program. Accordingly, after you graduate from your FDR program or otherwise terminate this Agreement for any reason, we will evaluate your eligibility for a refund of some or all of the settlement fees you have paid. In particular, if your FDR program settlement costs exceed the enrolled amount of your settled debts then we will refund the amount of that excess, up to 100 % of our settlement fees. Important notes and limitations : i. Your enrolled debts are reflected on Exhibit A and may be restated as described below. ii. For purposes of this settlement fee refund, your FDR program settlement costs are ( a ) the total amount you paid to your creditors through your FDR program, plus ( b ) the total settlement fees paid to us as described in, Subsection 5.a. ( excluding any other fees, costs or taxes you may incur ). iii. In the event you charge, draw, or take advances on a debt after enrollment, that debt, and any FDR program settlement costs associated with that debt, will not be considered for purposes of this settlement fee refund.

Debt Reduction was {$380.00} but at a lost with fees being paid out at {$1000.00} which in the contract, it does not say what " eligibility '' may look like and why it is being taken from me if I am at a loss with them taking before paying the creditor with my own money. I also did not receive any updates on settlements that were made or denied prior to this settlement which started at around {$2500.00} and then went to {$3700.00} with the settlement still ending in {$1000.00}. FDR has made it unclear of whom my payment is going to rather than discussing these matters verbally or in-person, I was sent an e-mail asking for a signature to continue with the authorization for this creditor ( s ) which payments would be made to one entity but also in the other entities name. It is stated that the current creditor is XXXXXXXX XXXX XXXX XXXX  and the original creditor is XXXX XXXX XXXX XXXX. The summons and complaint ( in which I was served ) was also in the name of XXXXXXXX XXXX XXXXXXXX XXXX and not XXXXXXXX XXXX XXXXXXXX. 

My entire experience has been nothing but assumptions and given the circumstances, since the first month of enrolling my debt, there has been confusion about my accounts and where the money goes ( including the account made for me through another banking company " XXXX, '' that does not explain where the money was taken from my dedicated account to show the settlement fees ) According to the XXXX summary of activity, there is no actual name for the fees or which fees is associated with which debt that has been charged correctly without using mathematics to figure out which fees were debited from my account. Instead, it only says " Settlement Fees, '' rather than " Settlement Fee For ... '' The company also take their money in this last settlement first before paying the " new creditor '' in which it is not enrolled as " XXXX XXXX  XXXX, '' it is enrolled as XXXXXXXX XXXX  XXXX XXXX but I am making payments out to " XXXX XXXX XXXX '' as well as the document that was sent has the name of the " original creditor '' as well and not the current creditor. Next, my debt may have been reduced but the settlement fee was still high and created less progress by taking a large payment from me. I would also like to say that when

Company response to consumer: Closed with explanation