Thanks to the Attorney General’s Office, hundreds of cash-strapped Washington consumers who paid Freedom Debt Relief to work out a deal with their credit card providers will be feeling some relief.
The California-based company agreed to pay up to nearly $800,000 in restitution to resolve allegations it violated Washington’s Consumer Protection and Debt Adjusting Acts.
“We’re paying special attention to operations that take advantage of people who, due to this tough economy, are already struggling to put food on the table and keep the lights on,” Attorney General Rob McKenna said. “Failing to inform customers that their credit may be ruined and taking illegal fees -- when those individuals are making a good-faith effort to settle their debts – are practices that we aim to stop.
About 1,100 Washington consumers who collectively owed $35 million in debt enrolled in the program since Freedom Debt Relief started operating in 2003. The Attorney General’s Office estimated that more than 570 of those consumers are eligible restitution under the state’s settlement.
For more information about the settlement visit http://atg.wa.gov/pressrelease.aspx?&id=27454