Best for Transparency
Our take: Freedom Debt Relief is an excellent option for debt settlement due to the company’s transparency, its willingness to work with debts under $10,000, and the availability of personalized plans.
Debt Settlement
- Founded in 2002 (23 years in business)
- Large, skilled team of 500+ debt consultants and 200+ debt negotiators
- Has served more than 1 million clients
- Has resolved more than $20 billion in debt
- If your total program settlement cost exceeds the amount of debt you enrolled, FDR refunds the difference from collected fees (up to 100%)
- Proprietary algorithms determine which debts to settle first
- Helpful online dashboard to track progress, review offers, and approve settlements
- Can harm credit while active (like all settlement programs)
- Cannot settle tax debts, federal student loans, or secured loans
- Fees of 15% – 20% plus $9.95/month
- Unavailable in some states (listed below)
| Min. required debt | $7,500 |
| Settlement fee | Up to 20% of total debt enrolled in the program |
| Additional fees | $9.95 monthly maintenance fee |
When you’re struggling with high balances, debt settlement can feel like a lifeline, especially if you’re exploring well-known providers such as Freedom Debt Relief. With more than two decades in business and over $20 billion in resolved debt, FDR is one of the largest and most transparent settlement companies operating today.
This review covers how Freedom Debt Relief works, its fees, minimum debt requirements, downsides, and availability. We’ll also compare Freedom Debt Relief vs. National Debt Relief and Freedom Debt Relief vs. Accredited Debt Relief so you can decide whether FDR is the right fit or if another provider may offer better results.
Table of Contents
What is Freedom Debt Relief?
Freedom Debt Relief (FDR) is a debt settlement company that negotiates with creditors to reduce the amount you owe on unsecured debt.
Founded in 2002, it’s one of the largest providers in the industry, with more than $20 billion in resolved debt and 1 million+ clients served. Its program focuses on helping people who are behind on payments and need a structured path toward becoming debt-free.
Is Freedom Debt Relief legit?
Yes. Freedom Debt Relief is legit, not a scam. It’s been in business for more than 20 years, follows Federal Trade Commission rules for debt settlement companies, and is a member of the AFCC and IAPDA. It charges no upfront fees and only earns money after a settlement is reached.
2019 CFPB lawsuit and settlement
In 2019, the Consumer Financial Protection Bureau (CFPB) required FDR to pay $20 million in restitution plus a $5 million civil penalty. The complaint alleged that fees were charged before certain debts were settled and that some customers were misled about the company’s ability to negotiate with all creditors. FDR resolved the matter and continues to operate under FTC-compliant guidelines.
How Freedom Debt Relief works
- Free consultation: You share your debt amount and basic financial info.
- Program enrollment: You open an FDIC-insured account and make monthly deposits.
- Strategic nonpayment: FDR typically recommends pausing payments to your creditors.
- Negotiation: FDR’s negotiation team approaches creditors with reduced settlement offers.
- You approve settlements: Offers appear in your dashboard for review.
- Completion: When all enrolled debts are settled, you finish the program.
The infographic below shows how FDR says it improves lives:
How long does debt settlement take?
Programs typically last 24 to 48 months, depending on your debt amount, number of creditors, and how quickly you can fund your account.
Minimum debt requirement
FDR requires a minimum of $7,500 in unsecured debt to enroll.
Where Freedom Debt Relief is available
- Direct service states: AL, AK, AR, AZ, CA, DE, FL, IA, ID, IN, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, NE, NM, NV, NY, OK, PA, SD, TN, TX, UT, WI
- Through legal partners: CT, GA, NH, NJ, IL, KS, ME, OH, SC, VA
States where Freedom Debt Relief is not available
- CO, DC, HI, ND, OR, RI, VT, WA, WV, WY
State availability can change. Check Freedom Debt Relief’s official website or speak with a debt consultant to confirm service in your area before applying.
Fees and costs
- Settlement fee: 15% – 20% of enrolled debt (only after a settlement is reached)
- Monthly maintenance fee: $9.95 for account management
- No upfront fees: All charges occur after a negotiated settlement is finalized
How Freedom Debt Relief affects your credit
Debt settlement programs, including FDR’s, can lower your credit score during participation because you stop paying creditors. Negative marks can remain for up to seven years, though their impact lessens over time. As settled debts age and you establish positive payment history, your score can recover.
Customer reviews
| Platform | Rating | Number of reviews |
|---|---|---|
| Better Business Bureau | 4.43/5 | 1,736 |
| Trustpilot | 4.6/5 | 47K |
| 4.5/5 | 1,627 |
Positive reviews highlight successful settlements and helpful consultants. Critical reviews mention fees, delays, and creditor lawsuits during the program, which are common risks in debt settlement across the industry.
Is Freedom Debt Relief BBB-accredited?
Yes, FDR is accredited by the Better Business Bureau. Its BBB rating is A+, and it earns positive reviews on the BBB and other websites, as you can see above.
What are the downsides of Freedom Debt Relief? (Pros and cons)
Pros
-
22 years in business with $20B+ debt resolved
-
Large, experienced negotiation team
-
Proprietary tech to help prioritize settlements
-
Refund policy if settlement cost exceeds debt amount
-
Online dashboard for transparency and control
Cons
-
Like all settlement programs, can harm credit while active
-
Cannot settle tax debts, federal student loans, or secured loans
-
Fees of 15% – 20% plus $9.95/month
Alternatives to Freedom Debt Relief
Here’s how FDR compares to two other top-rated debt relief companies:
Freedom Debt Relief vs. National Debt Relief
Like FDR, National Debt Relief (NDR) is among the largest debt settlement companies in the U.S., with decades of experience and billions in debt resolved. NDR follows the same core industry standards: Programs typically last 24 to 48 months, and you stop paying creditors to encourage settlement. You’ll only pay fees after a settlement is reached.
FDR has a lower minimum required debt, and its refund guarantee is unique. National Debt Relief has more geographic reach, serving 47 states, but is not available in Oregon, Vermont, West Virginia, Guam, Puerto Rico, the U.S. Virgin Islands, and Washington, D.C.
- Choose NDR if you have more than $10,000 in unsecured debt and want a company with our team’s highest editorial rating.
- Choose FDR if you want a lower minimum debt threshold, a refund policy, and broader state availability.
Freedom Debt Relief vs. Accredited Debt Relief
FDR and Accredited Debt Relief (ADR) both provide debt settlement programs aimed at reducing the total amount owed to creditors, and both follow FTC rules and AFCC standards.
Freedom Debt Relief is available in more states and has a lower minimum debt requirement. Accredited charges no monthly account fees and can connect qualified clients to debt consolidation loans through its parent company, Beyond Finance.
FDR is available in more states, including some where it operates through legal partners. ADR is available in 31 states plus Washington, D.C., and is unavailable in 19 states.
- Choose ADR if you might qualify for a debt consolidation loan and want no monthly account fees.
- Choose FDR if you want broader availability, a lower minimum debt requirement, and a refund policy.
FAQ
Is Freedom Debt Relief a scam?
No. FDR is a legitimate debt settlement company with more than two decades of operating history and strong customer reviews.
What is the Freedom Debt Relief program?
It’s a debt settlement program where negotiators work to reduce your unsecured balances in exchange for lump-sum payments from your dedicated account.
Does Freedom Debt Relief work with all creditors?
No. Secured debts, taxes, and federal student loans are excluded.
How we rated Freedom Debt Relief
We designed LendEDU’s editorial rating system to help readers find companies that offer the best debt settlement options. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.
We compared Freedom Debt Relief to several debt settlement companies, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.
| Company | Best for… | Rating (0-5) |
|---|---|---|
| Best for Transparency |
About our contributors
-
Written by Deb HippDeb Hipp is a freelance writer with more than a decade of financial writing experience about mortgages, personal loans, personal finance, and debt.
-
Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.