Consumer complaint received 2021-02-09
Company: FREEDOM FINANCIAL NETWORK
State: NE
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit repair services
Issue: Confusing or misleading advertising or marketing

Complaint:
XX/XX/XXXX - My spouse and I sought out looking for a company to help us consolidate our debt into one loan - We had a large amount of debt ( 2 large loans {$32000.00} and {$33000.00} aprox. ). Except for the debt, We had excellent credit. I have never missed a payment PERIOD. We had just closed on a XXXX home XX/XX/XXXX, without having to sell our other home first - to show our credit was excellent. 
XX/XX/XXXX - Freedom Debt Relief - contacted my husband. The gentleman 's name was XXXX XXXX. XXXX requested to speak to both of us at a prearranged time where he would call us at a time that worked best for both of us. We spoke with him. He presented with our options over the phone as welll as the email I still have. 5 options : 1 ). continue our path making our payment. 2 ) loan consolidation, 3 ) Credit counseling, 4 ) Bankruptcy 5 ) Debt settlement. He told us 'after reviewing the information provided '' our best option would be # 5 Debt settlement. Major benefits he said - reduces monthly debt, provides one monthly payment, resolves the debt in a shorter amount of time. He was very persuasive. He told us both over the phone usually all debt is settled in 6 mons and in '2 years ' we will be 'debt free and the minimal damage done to our credit will be gone '. A much better option to bankruptcy as he stated - which I was never considering and to this day would never consider. We signed up with this service on XX/XX/XXXX. We were led to believe we will make a monthly payment of {$1000.00}, this would go into an account that will pay off the creditors as the accounts are settled. He led us to believe very little damage would occur to credit report AND it would be off of our credit report in 2 yrs, where as bankruptcy remains for 7 years. He led us to believe negotiations would start right away AND in approximately 6 mons from our sign up date- the debts would be settled. We were told to change all contact information with the 3 companies he felt we should enlist to an address and phone number he provided us AND to STOP making our monthly payments and let these debts go into default or missed payment mode. I was very uncomfortable with this, BUT XXXX explained this is so they have negotiation power. We were also led to believe all payments made would directly pay off out debt once settled and there was NO mention of 'settlement fees ' that this money would first cover. These settlement fees were approx $ XXXX. EACH. This was NEVER Explained. NOR was it ever explained that any debt write off or the amount decreased would be TAXED with the yearly income tax. It is considered income and we MUST pay taxes on it as we are now discovering. We were never told we had to have a certain percentage of money in our ' freedom debt relief account ' before they would start negotiating. I have called several times in attempts to understand these fees, and where my money has gone, why is it taking so long, why are they not negoitating, WHY is this taking longer than told, WHY is my credit 100 % destroyed and will remain on my record for approx 7 years as I am now told, NOT the 2 yrs. I was not given all the information NEEDED to make an EDUCATED evaluation on what was best for myself and spouse.. My credit is destroyed. My spouse has XXXX , we live in a 2  story house. This summer, he had an XXXX  XXXX attack - where we were told by the neurologist - we will eventually need a 1 story home, he will not be able to do stairs. This is now impossible - We can not even get refinanced because of the MISLEADING and incorrect information provided by FDR ( Freedom Debt relief ) XX/XX/XXXX - I deposited 2 large amounts into our " FDR '' accounts after learning they will not negotiate until a percentage of an unknown amount was in this account. I placed a total of {$15000.00} - with help from my husbands retirement account ( which made us sick to our stomachs to touch ). 
XX/XX/XXXX, XXXX approx - first debt resolved and we were charged {$6800.00} in " settlement fees '' which came out of this account XX/XX/XXXX - approx - second debt 'resolved and we were charged {$6200.00} in 'settlement fees '' which came from this account XX/XX/XXXX - approx - the 3rd debt was resolved - we again were charge {$1000.00} in 'settlement fees ' Total in settlement fees {$14000.00} approx. WOW, WOW Total of Debt enrolled {$65000.00}, amount settled to pay = {$42000.00} These fees - WERE NEVER explained to us. We had NO CLUE such a fee with this amount existed. 

Again - This was all VERY MISLEADING and confusion - Key information was excluded, we were not allowed to make an educated decision that would best suite us, signing the documents over the phone- electronically- we felt rushed - we received a brief ' summed up description of each document and then immediately ' please sign '. the enrollment process was VERY fast. 
ALL conversations were recorded as stated by XXXX XXXX at the beginning of the call and every customer service rep I spoke with since that time of initial sign on. XXXX XXXX also said to please contact him at anytime if we had questions - I did reach out to him XX/XX/XXXX via EMAIL - No response was received - this prompted me to reach out to customer service which is where i discovered we made the worst, most catastrophic decision and all we were told WAS NOT entirely the truth. We would have NEVER signed up for this knowing the correct and FULL information. 
To continue .... 
XX/XX/XXXX - I was contacted by XXXX XXXX via email and Phone. I want you to understand this voice sounded Identical to the Man we spoke with XX/XX/XXXX. IDENTICAL- the voice, mannerisms of speech, the persuaiveness, etc. Again, we were told all conversations are recorded. I encourage this to be looked into. 
XXXX XXXX told us we have done very well in this program and he had an 'exclusive offer for us ' and off that is not often shared with other program members. they could transfer our account into a new account that would help us regain our credit faster, would be reported montly to the 3 credit bureaus etc ... he also said the interest rate 'shouldnt be that bad '. We agreed to be removed from FDR and placed with XXXX XXXX. Again- our understanding and what was explained to us was the money we have paid transfers over and we will be set up with a new account for the ONLY the amount owed or needed to pay. So at this time, we had placed our monthly payment of XXXX from XX/XX/XXXX to XX/XX/XXXX = total of XXXX, plus the XXXX to equal approx XXXX the FDR website was incredibly difficult to understand - we 'assumed ' the amount settled minus the amount we have already contributed would make of the difference and the amount owed on this 'new ' loan. which meant approx XXXX would be this new loan amount. INCORRECT- the new loan amount is {$35.00}, XXXX, at an interest rate 22.90 %, maturity date XX/XX/XXXX making monthly payments XXXX XXXX 
WOW, WOW. 
We have been mislead, not given ALL the information ( information was withheld ), Credit destroyed, OWE more money now via all these fees, loans, AND now our XXXX Income taxes. this is quite of bit the government is taking us on. This would have been a gamer changer and we would have never signed up Amount of debt started with = XXXX Settlement fees = XXXX Amount settled = XXXX New Loan amount = XXXX WITH 22.9 % interest until XXXX ( starting XX/XX/XXXX ) All these numbers are very confusing to me. I feel as if we were mishandled and scammed. 
This is outrageous company took advantage of people is rough spot and has not helped the situation - we are by far worse off now than before we were fooled into starting down this destructive and damaging path. It wasn't until this last week, I started looking up potential attorneys and lawsuits - I found were in XXXX Consumer Financial Protection Bureau sued Freedom Debt Relief for misleading their customer, etc .... 
I am not sure where to start - But I am considering obtaining legal advice. I found where CFPB had filed a lawsuit against FDR- So I am starting here in desparate hope you are able to help me and THIS company is stopped from taking advantage of any further people. Without Credit - you life is financially at a standstill. Mortgage, car loans, any type of personal loan that may arise, small loans for XXXX for both our XXXX XXXX  aged children, college loans for our children in the near future, etc ... where do I even stop. This EFFECTS everything - even auto insurance, etc ... they view your credit history I have all emails and access to both my FDR account and my new XXXX XXXX  account

Company response to consumer: Closed with explanation