Freedom Debt Relief Review 2025: Best for Transparency

Best for Transparency

4.6 _/5

Learn More

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

Freedom Debt Relief (FDR) is based in San Mateo, California. The company offers a debt settlement program that helps you negotiate with creditors to reduce the total you owe. With $20 billion+ in resolved debt and more than 20 years of experience, FDR has supported a million clients in managing unsecured debt.

In our extensive research on debt settlement companies, FDR stands out for its transparency.

Table of Contents

1. Is Freedom Debt Relief legit?
   1. 2019 CFPB lawsuit and settlement
2. How FDR works (5 steps)
   1. How long does it take?
   2. Minimum debt requirement
   3. Where FDR is available
   4. States where it’s not available
3. Fees and costs
4. How FDR affects your credit
5. Customer reviews
6. Pros and cons
7. Alternatives
   1. vs. National Debt Relief
   2. vs. Accredited Debt Relief

Is Freedom Debt Relief legitimate?

Freedom Debt Relief (FDR) is one of the largest and most established debt settlement companies in the U.S. With 22 years in business, more than $20 billion in resolved debt, and membership in industry groups like the American Fair Credit Council (AFCC) and the International Association of Professional Debt Arbitrators (IAPDA), it follows FTC rules and standard industry practices.

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

Step 1: Free eligibility check

You begin by entering your debt amount, state of residence, and contact info on the FDR website. If you appear eligible, you’ll be invited to speak with a debt consultant by phone.

Step 2: Account setup and deposits

If you enroll, you’ll open an FDIC-insured account and make monthly deposits. These funds will later be used for negotiated settlements.

Step 3: Strategic nonpayment period

Like other settlement programs, FDR typically advises you to stop payments to creditors. This can lead to credit score drops and possible collection activity, but it’s intended to motivate creditors to accept a reduced lump-sum offer.

Step 4: Negotiation and settlement approval

FDR’s negotiators, aided by proprietary algorithms to prioritize which debts to settle first, approach creditors with settlement offers. You must approve each offer through your online dashboard before funds are released.

Step 5: Program completion and refund policy

Once all enrolled debts are settled, the program ends. If your total settlement cost is higher than your enrolled debt amount, FDR refunds the difference from collected fees, up to 100%.

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

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	4.44/5	1,800
Trustpilot	4.6/5	47K
Google	4.6/5	581

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.

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.

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.