![]() ![]() Freedom Debt Relief has already paid the State of New York these funds so restitution can begin after the settlement has been approved by the court. Today’s settlement would allow the OAG to begin distribution of the nearly $3.6 million in restitution directly to the more than 8,000 New York consumers deceived by the company. ![]() The majority of New York consumers achieved less than half of the savings Freedom Debt Relief advertised. For example, Freedom Debt Relief advertised savings that were achieved only by consumers who made all their monthly program deposits, but the company failed to disclose that this group represented only about one-third of New York consumers. Instead of complying with this explicit requirement in the 2011 settlement, Freedom Debt Relief continued to advertise savings on its website without making the required disclosures. Freedom Debt Relief was, however, permitted to advertise certain savings that had been achieved by a defined group of New York consumers if it clearly disclosed which consumers were in that group and what approximate percentage of the whole group of New York consumers the defined group represented. The company also agreed to change a number of its practices to conform with both New York State and federal laws.Īmong its many 2011 obligations, Freedom Debt Relief agreed to refrain from advertising certain savings that could be achieved by New Yorkers unless those savings had actually been achieved by a majority of New York consumers in the 36 months preceding the claim. Under that previous settlement, Freedom Debt Relief agreed to refund $1.1 million to former customers and offer refunds of hundreds of thousands of dollars to what were current customers at the time, as well as pay $100,000 in penalties. In 2011, the Office of the Attorney General (OAG) previously settled an investigation with Freedom Debt Relief after the company was found to be engaging in illegal, fraudulent, and deceptive practices. Today’s settlement will ensure additional restrictions are placed on Freedom Debt Relief so that the company can no longer take advantage of consumers.” “Ten years after this company paid over $1.2 million to my office for its fraudulent and deceptive practices, Freedom Debt Relief is back in hot water for unlawful behavior once again. “Today’s settlement will deliver more than $3.5 million directly into the pockets of struggling consumers, many of whom continue to suffer the devastating economic impacts of COVID-19,” said Attorney General James. A proposed settlement filed in court today with Freedom Debt Relief will require the company to provide nearly $3.6 million in restitution to New Yorkers who were victims of the company’s exaggerated promises, in violation of a 2011 settlement filed with the Office of the Attorney General (OAG). ![]() NEW YORK – New York Attorney General Letitia James today secured a win that will return nearly $3.6 million to thousands of New York consumers who were misled about savings they could achieve through one of the nation’s largest debt settlement companies. Freedom Debt Relief Advertised Exaggerated Savings, in Violation of 2011 Agreement ![]()
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