Freedom Debt Relief, LLC

What Freedom Debt Relief, LLC does

Freedom Debt Relief, LLC is a privately-held U.S. debt settlement company founded in 2002 and headquartered at 1875 S Grant St #300, San Mateo, California. The company negotiates reduced settlements with creditors on behalf of consumers carrying unsecured debt, primarily credit card balances, medical bills, department-store cards, personal loans, lines of credit, some payday loans, and some private student loans. Clients enroll through a phone-based sales process staffed by 500+ certified debt consultants, fund an FDIC-insured dedicated account operated by Crossroads Financial Technologies (CFT), and authorize settlements negotiated by 200+ in-house negotiators; Freedom Debt Relief charges a fee of 15-25% of enrolled debt only after a settlement is reached, approved by the client, and the first payment has been made.

The company's operating technology centers on a proprietary negotiation platform developed over 22+ years of creditor interactions, supported by a 24/7 client dashboard for tracking settlement offers and dedicated-account balances. Freedom Debt Relief has relationships with 4,000-4,500 creditors and reports 4 million+ settled accounts out of 5 million+ enrolled, with a 39-month average program duration and an average 28% client savings after fees. The platform is licensed under the California DFPI's CCFPL framework (registrations 01-CCFPL-1248929-3482303 and 02-CCFPL-1248929-3726479) and NMLS ID #1248929; in 10 states where attorney-model delivery is required (CT, GA, NH, NJ, IL, KS, ME, OH, SC, VA) services are routed through a Legal Partner Network at no incremental cost to qualifying clients.

Commercially, Freedom Debt Relief generates revenue on a transaction-fee basis with no upfront charges and operates a direct-to-consumer go-to-market combining inside sales (800-910-0065), online self-service qualification, SEO/SEM, content marketing, third-party review platforms, and earned media. The company employs 1,600+ people across Arizona, California, and Texas, and serves 200,000+ active clients in its program as of January 2025, having worked with 1,000,000+ cumulative clients and resolved $20 billion+ in enrolled debt since inception. Recent strategic additions include a free federal/state tax-filing service (February 2026) delivered via the April AI-powered tax platform to address taxable-income consequences of forgiven debt.

Name

Freedom Debt Relief, LLC

Legal name

Freedom Debt Relief, LLC

Website

https://freedomdebtrelief.com

Company type

Private

Founded year

2002

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Freedom Debt Relief is a U.S. debt settlement company founded in 2002 that negotiates reduced payments on unsecured consumer debt for a 15-25% fee, serving over 1,000,000 clients and resolving more than $20 billion in enrolled debt to date.

Ownership category

akta.pro rank

Product category

Consumer Debt Settlement Services

NAICS

Other Nondepository Credit Intermediation (52229)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Debt Settlement / Negotiation Programs (Non-loan) (FSAKAIAK)

akta.pro secondary industry

Collections & Creditor Negotiation Support (Debtor-Side) (FSAEAFAI)

Keywords

• Debt settlement services
• Consumer debt relief
• Credit card debt negotiation
• Unsecured debt resolution
• Debt consolidation referral

Headquarters

HQ city

San Mateo

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Marketing or Sales, Operations, Technology or R&D, Infrastructure, Others

Revenue model

1. Debt Settlement Fees: Freedom Debt Relief charges settlement fees ranging from 15% to 25% of the enrolled debt amount. Fees are only collected after a settlement is negotiated, approved by the client, and the first payment has been made. The rate varies based on state of residency and amount enrolled.
2. Dedicated Account Fees: Clients pay fees to Crossroads Financial Technologies (CFT) for setting up and maintaining the dedicated account used to accumulate settlement funds. One-time setup fee of $9.95 and monthly fee of $9.95. Freedom Debt Relief does not receive any part of these fees.
3. Affiliate Loan Referrals: Freedom Debt Relief refers clients to affiliate companies that offer personal loans and home equity loans for debt consolidation. They do not themselves offer loan products.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels7 records

Core offering

Freedom Debt Relief operates a consumer debt settlement program in which certified consultants and negotiators enroll individuals' unsecured debts — credit cards, medical bills, personal loans, department store cards, lines of credit, and certain payday or private student loans — and negotiate with creditors to settle the balances for less than the full amount owed. Clients make one consolidated monthly deposit into an FDIC-insured Dedicated Account; Freedom charges a settlement fee of 15%–25% of enrolled debt, collected only after each settlement is authorized and the first payment has cleared, with an average program length of 39 months and average savings of roughly 28% after fees.

Product overview

Freedom Debt Relief operates as a debt settlement service provider offering a single core program — its Debt Settlement Program — augmented by several add-on modules and an adjacent referral service. The core program involves certified debt consultants and expert negotiators who enroll consumers' unsecured debts (credit cards, medical bills, personal loans) into a structured settlement process; clients deposit funds monthly into an FDIC-insured dedicated account, and the company charges fees (15–25% of enrolled debt) only upon successful settlement. The product portfolio includes the core Debt Settlement Program, a Legal Partner Network providing attorney support for clients facing creditor lawsuits, a Program Guarantee that refunds fees if settlements exceed enrolled debt, and a free tax filing service powered by April (an AI-driven tax management platform) that addresses tax liability on forgiven debt — all accessible through a 24/7 Client Dashboard. The company also refers qualifying clients to affiliated partner companies for debt consolidation loans as an alternative solution.

Differentiator

Problem solved

Functional benefit

Products and services

• Freedom Debt Relief Debt Settlement Program Core debt settlement program in which certified consultants and negotiators enroll consumers' unsecured debts (credit cards, medical bills, personal loans, department store cards, lines of credit, collections, some payday and private student loans) and negotiate with creditors to settle balances for less than the full amount owed. Clients make one consolidated monthly deposit into an FDIC-insured Dedicated Account; Freedom charges a 15%–25% settlement fee only after each settlement is authorized and the first payment has cleared.
• Free Tax Filing via April Partnership AI-powered federal and state tax filing service offered at no additional cost to Freedom Debt Relief clients through a partnership with April, helping clients manage taxable income arising from debt that has been forgiven through the settlement program.
• Debt Consolidation Loan Referral Service Referral-based debt consolidation loan service that connects qualifying Freedom Debt Relief clients with affiliate partner companies offering personal loans and home equity loans as an alternative to debt settlement for consumers who can qualify for consolidation financing.

Quantifiable outcome

• Average savings of 28% of enrolled debt after fees
• +3 more outcomes

Named customers11 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• AprilcoreStrategic or Co-development Partner · 25 February 2026April, an embedded tax solutions provider founded in 2022, partnered with Freedom Debt Relief to offer free federal and state tax filing services to clients using April's AI-powered platform. The partnership helps reduce the tax preparation burden on clients, addressing tax liability on forgiven debt from relief programs. This is part of April's B2B strategy to embed tax capabilities into financial institutions, following partnerships with companies including Acorns, Robinhood, and PayPal.
• AprilcoreStrategic or Co-development Partner · 12 February 2026Freedom Debt Relief partnered with April to provide free DIY tax filing services to customers facing tax liability on forgiven debt. Forgiven debt from relief programs is treated as taxable income, so this partnership helps clients navigate tax implications while focusing on debt relief efforts.
• AprilcoreStrategic or Co-development Partner · 11 February 2026Freedom Debt Relief has partnered with April to offer free federal and state tax filing services to its clients using April's AI-powered platform. The initiative aims to reduce the tax preparation burden on clients, helping them focus on their debt relief efforts while addressing potential tax consequences of debt forgiveness.
• Crossroads Financial Technologies (CFT)coreTechnology or IntegrationCrossroads Financial Technologies provides the FDIC-insured dedicated account used by clients to accumulate settlement funds. CFT collects fees for setting up and maintaining the dedicated account and processing payments to creditors. Freedom Debt Relief does not share or receive any part of these fees.
• Legal Partner NetworkcoreImplementation/ SI/ Consulting PartnerFreedom Debt Relief works with a network of attorneys to support clients who may face legal challenges during the debt settlement process. This legal support is included in the debt relief program at no additional cost for qualifying clients who have made their monthly deposits on time. The service does not apply to legal action taken before enrollment or on debts not enrolled.
• Association for Consumer Debt Relief (ACDR)coreOthersFreedom Debt Relief is a founding, accredited member of the Association for Consumer Debt Relief. Through ACDR accreditation, practices are audited semi-annually to ensure compliance with federal and state regulations as well as ACDR's higher standards.
• International Association of Professional Debt Arbitrators (IAPDA)coreOthersFreedom Debt Relief is a platinum member of IAPDA, with team members certified in ethical debt settlement practices. The company works with more than 4,500 creditors nationwide through this network.
• Financial Health NetworkminorOthersFreedom Debt Relief is a member of the Financial Health Network, a nonprofit that brings together financial services innovators committed to helping Americans build financial resilience. As part of this community, the company shares ideas and best practices to create solutions that improve client financial health.

Scale indicators10 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Pacific Debt Relief: Debt settlement company focused on unsecured consumer debt with a comparable D2C enrollment model. Appears alongside Freedom in industry rankings and serves an overlapping customer profile.
• Accredited Debt Relief: Direct debt settlement competitor with comparable target customer (struggling consumers with unsecured debt), inside-sales GTM, and fee-based revenue model. Frequently listed alongside Freedom in third-party 'best debt settlement company' rankings.
• CuraDebt: Debt settlement and tax debt resolution company serving consumers and small businesses with comparable fee-based negotiation services. Overlaps with Freedom on unsecured debt and extends into tax debt.
• New Era Debt Solutions: Mid-sized debt settlement firm offering direct-to-consumer negotiation services for unsecured debt. Competes for the same customer segment and uses a comparable fee structure and inside-sales motion.
• DMB Financial: Debt settlement firm offering negotiation services for unsecured consumer debt with similar program structure. Direct competitor for Freedom's inside-sales-driven customer acquisition.
• National Debt Relief: Largest direct competitor in U.S. consumer debt settlement, offering nearly identical D2C inside-sales-driven negotiation services for unsecured debt with similar fee structures. Most natural head-to-head peer for Freedom Debt Relief.

Broad incumbents

• Money Management International (MMI): Large non-profit credit counseling agency offering debt management plans, housing counseling, and financial education. Serves a similar financially stressed consumer base via an alternative resolution path (DMPs rather than settlement).
• LendingClub: Personal loan and debt consolidation lender that competes with Freedom's affiliate loan referral channel by offering direct consolidation loans. As lending standards fluctuate, it represents the consolidation alternative Freedom's customers often cannot access.
• GreenPath Financial Wellness: Non-profit credit counseling and debt management plan provider that competes with Freedom for the same financially distressed consumer, but offers DMPs and counseling rather than settlement. Represents the alternative-path competitor frequently referenced in consumer debt-relief comparisons.

Emerging players

• Dave Inc. Public fintech offering cash advances, budgeting tools, and banking services to underbanked and credit-challenged consumers. Targets an adjacent customer (those struggling with bills) before they reach settlement-level distress, representing upstream competition for Freedom's funnel.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/freedomdebtrelief

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Freedom Debt Relief, LLC