The Consumer Financial Protection Bureau claims that Freedom Debt Relief, the nation’s largest debt settlement services provider, built its business on lying to its customers about the company’s ability to negotiate debt settlements, HousingWire.com reported. The CFPB announced yesterday that it is suing Freedom Debt Relief and its co-CEO, Andrew Housser, for violating the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Telemarketing Sales Rule by repeatedly deceiving customers. According to the CFPB, Freedom collects fees from customers without settling their debts as promised, makes customers negotiate their own settlements, misleads them about the company’s fees and the scope of its services, and fails to inform them of their rights to money they deposited with the company. “Freedom took advantage of vulnerable consumers who turned to the company for help getting out of debt,” CFPB Director Richard Cordray said. “Freedom deceived consumers about its clout with creditors that it knows do not negotiate with debt-settlement companies, made some customers negotiate on their own, and misled consumers about its fees and their accounts.”
