Debt Freedom Inc. (Freedomdebt.com) is a debt-relief company that offers settlement assistance to consumers. There are many consumers who have claimed that they benefited from the service of this debt settlement company. Many consumers who have participated in the DebtCC community have stated that Debt Freedom Inc. is a good company to deal with and they do deliver what they promise.
Does this company really help people with their debts?
Consumers have claimed that the company indeed helped them in settling the debts with their creditors conveniently. Some of the positive feedback shared by the consumers in the DebtCC forums are as follows:
- They assist in repaying debts: A consumer says that Debt Freedom Inc. (Freedomdebt.com) is not a scam company. They have good reputation and they are regularly featured on TV news shows. According to him, a scam company would never have been featured on a news show. He adds that he got enrolled in a debt settlement program with the company and got positive results. The company successfully settled his $8k CapitalOne account for just $3k. They also settled another account for less than half of what he owed. The company was also able to stop harassing calls from creditors to a great extent. Find more.
- They charge reasonable fees: Another consumer says Debt Freedom Inc. (Freedomdebt.com) does not charge outrageous fees from customers. He says that they roll the fees into payments that are convenient for consumers. He says that he had to pay Freedom almost half of what he was previously paying a credit counseling agency. So, it helped him save dollars. Check out more on this.
Most of the consumers have good experience of dealing with this settlement company. However, with so many scam companies out there in the market and the number of debt-relief frauds growing at an alarming rate, it is important to take precautions before choosing a settlement company.
Things to remember before signing up with a settlement company
Take a look at the points below to know what things to keep in mind before getting help from a debt settlement company:
- Check company's credentials: The first thing you should do before signing up with any settlement company is to check their credentials. Check the company's records with the BBB and the State Attorney General's office. Find out consumer feedback about the company and the types of complaints against them.
- Insist on written agreement: Always get the agreement in writing. Do not believe in any verbal agreement. These do not have any legal validity. When you have everything in writing, you have the opportunity to take legal action in case the company violates the agreement.
- Make sure your money is safe: Make sure the trust account where you are going to make your monthly payments is insured by FDIC. This is to ensure that you do not lose your hard-earned money due to bank failure or any other reasons.
- Beware of unrealistic promises: Use your common sense and do not fall prey to unrealistic promises. Many settlement companies promise a lot, but deliver none. Thus, think several times before choosing a company that makes too-good-to-be-true promises, because chances are that it could be a scam company.
- Keep your account details safe: Do not provide your bank account details to the settlement company. If it is a scam company, it can rip you off your savings.
- Check if you'll be refunded: Get it in writing from the company if they are going to refund you just in case you wish to discontinue with the settlement program.
- Keep relevant documents ready: You should also keep the relevant financial documents and bills handy. This will help the settlement company to know your exact financial situation and work better on your behalf to settle the debts.
New Act to protect consumers from unfair debt settlement practices
A new legislation, known as the Debt Settlement Consumer Protection Act, has been introduced by Senators Charles E Schumer and Claire McCaskill on April 28, 2010. This new legislation is aimed at protecting consumers from unscrupulous settlement companies. It has the following key features:
- It requires the settlement companies to provide meaningful written disclosures to consumers.
- It limits the fees charged by these companies for their service.
- It needs the companies to inform consumers about their right to claim refund if they decide to discontinue with the settlement program.
The legislation also empowers the Federal and State authorities with additional enforcement rights to crack down on settlement companies engaged in unfair business practices.