CFPB Inks $25M Deal With Debt Settlement Co.

Law360 (July 9, 2019, 5:53 PM EDT) -- Freedom Debt Relief LLC has agreed to pay $20 million in restitution and a $5 million fine in a deal to resolve a Consumer Financial Protection Bureau lawsuit accusing the company of misleading customers about its debt settlement services, the federal agency said Tuesday.

According to papers filed Tuesday in California federal court, the deal also requires San Mateo, California-based Freedom, which is the nation’s largest provider of debt settlement services, to make certain upfront disclosures to customers and refrain from charging fees for debts that aren’t technically settled through its program but are nonetheless considered resolved, such as when a creditor...

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November 8, 2017

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