Were you sued by a creditor for a debt that is enrolled in your Freedom Debt Relief Plan?
Do you have the ability to cancel the Freedom Debt Relief contract? Luckily, you do, but there are some other things you need to keep in mind. Also, what happens next after you cancel the contract? What are your options?
Now,
if you're struggling with debt and want to know what to do next, check out our
free, unbiased debt options comparison calculator (
no email address required) that provides qualification and cost estimates for a wide range of debt options that fits your budget. The data is personalized to your income, expenses and where you live, so you can get estimated costs, as well as pros and cons of different options. Debt relief may be a great option for you, but it's helpful to understand each of your options.
The purpose of this article is to help you understand the process to cancel Freedom Debt Relief, so let's get started.
1) Freedom Debt Relief Cancellation Policy
According to the Freedom Debt Relief website, you can absolutely cancel your contract with them. However, there is a pretty strict time frame. You can cancel without penalty “at any time before midnight of the third business day after,” the day you sign the contract. This means you have three full days to cancel your contract without penalty.
If you decide after three days that you wish to cancel your contract, Freedom Debt Relief may have the right to keep anything that you have paid into them.
Process
This information is more than likely going to be found in your service agreement contract, so look there for more specific information. However, this is the general process:
- Locate the Notice of Right of Cancellation Form that is found in your initial contract. According to the contract that is available online, this would be found on page 36 of the contract.
- Sign and date the Notice of Right of Cancellation Form.
- Mail it off to Freedom Debt Relief, LLC ATTN: TERMINATIONS PO Box 2330 Phoenix, AZ 85002-2330
- Follow up with an email to terminations@freedomdebtrelief.com.
After cancellation, you probably have many questions when you cancel Freedom Debt Relief, such as whether you will get a refund from your escrow account or if you will be sued by your creditors.
As such, please feel out the form if I can answer any questions for you.
What Happens To The Money You’ve Already Paid Into Escrow?
While it is illegal for a debt settlement company to charge you for their services before they have finalized their negotiations, you will still be making payments into an Escrow account that will be used to settle your debts. Because of this, there may be some other charges that are non-refundable. These charges include any fees to set up your bank account and any processing charges. These charges you will not get back. However, you are entitled to get any other payments you made into the Escrow account. Make sure you have those funds secured before you close out any communication with Freedom Debt Relief.
It’s important to realize that you will still be responsible for the debt payments that you owe once you cancel your contract. So, if you were already a few weeks or months into the process and had missed any payments, you will still be liable for the missed payments as well as the recurring payments.
What Do You Do Now?
3 options after cancelling Freedom Debt Relief may be bankruptcy, debt management and another debt relief program.
As such, we built free resources to help you understand if you may qualify and the cost of bankruptcy and alternative options.
Bankruptcy Cost and Qualification Calculator
If you have realized that you cannot keep up with any payments, you cannot save up enough to settle, and your options are running out, bankruptcy may be the next best step for you. Bankruptcy can help discharge some of your debts either through liquidation or a structured, extended pay off schedule.
Chapter 7 bankruptcy is one of the lowest cost and fastest debt relief options, but you may have to qualify. That said, we built a free bankruptcy cost and qualification calculator that can help you estimate whether you qualify and the cost.
Debt Relief / Debt Management Calculator
It may be helpful that you understand ALL your options if you cancel your Freedom Debt Relief contract before creditors start hounding you again. As such, we built the following debt options and cost calculator that compares debt consolidation, debt management, bankruptcy and debt payoff planning. This gives you a holistic understanding of all your options in an unbiased way.
2) Why Might You Cancel Your Debt Settlement Contract?
There are a couple of reasons you might consider canceling your debt settlement contract. One of the most common reasons a
debt settlement contract is ended is because the individual decides that debt settlement isn’t the right option for them.
There are several debt relief options to choose from, and debt settlement can be one of the more precarious options. It opens you up to lawsuits, potentially
Freedom Debt Relief's program hurt your credit score, you checked the
reviews of debt relief companies in general, and it is a generally stressful process. Because of this, many people realize they would prefer to go a safer and more reliable route. They might cancel their contract in favor of doing something else.
Others cancel their contract because they feel as though the cost of the company is not worth the money they could potentially save. There are dozens (if not hundreds) of debt settlement companies, each offering similar services at varying prices. One reason you may cancel is that you realized you could work with a different company at a lower cost.
While these are only two reasons why you may want to cancel your Freedom Debt Relief Contract, there are many other reasons, all of which are valid. Regardless of why you want to cancel your contract, you need to know the how. Keep reading to find out how you can cancel your contract.
Are All Debt Relief Companies Bad?
No, but some debt relief companies do not tell you about the following:
- How much the debt relief program costs
- Your chances of being sued by a creditor
- How much your credit score will drop after enrolling
What's important to understand is that you have MANY options when you are dealing with debt issues, which we will cover later in this article. Let's now cover the Freedom Debt Relief cancellation policy.
3) What Are Your Other Options Once You Cancel?
As stated above, once you cancel your contract, you are still on the hook for the money that you owe your creditors. So, what should you do once you cancel? Luckily, you have a few options! Here are just a couple of options to consider if you decided that debt settlement is not right for you.
Consolidation of Settlement
You may just not be able to afford Freedom Debt Relief's fees, but would like to do debt settlement. You can do a
consolidation of settlements that will consolidate this program into a lower cost program.
One way that you can begin tackling your debt is by consolidating your various debts into one and making one lump sum payment each month. If your biggest issue is keeping up with the various payments you have, this can help you get and stay organized.
Please note that the debt options and cost consolidation calculator above can estimate your fees in a potentially lower cost option.
Bankruptcy
If you have realized that you cannot keep up with any payments, you cannot save up enough to settle, and your options are running out, bankruptcy may be the next best step for you. Bankruptcy can help discharge some of your debts either through liquidation or a structured extended pay off schedule.
Chapter 7 bankruptcy is one of the lowest cost and fastest debt relief options, but you may have to qualify. That said, we built a free bankruptcy cost and qualification calculator that can help you estimate whether you qualify and the cost.
Debt Management
If your biggest struggle is just understanding how your debt is structured and what the best moves forward are, you may want to look into
debt management. This is where you work with a counselor who can help organize your finances and show you how you can flow your money into your debt to help you get debt free as fast and as efficiently as possible.
Conclusion
One of the most popular forms of debt relief has become debt settlement, and Freedom Debt Relief is one of the biggest companies providing these services. While you may see the
pros and cons and get a discount on your debt, there's a catch. Typically, you have to intentionally let your account go into default by missing multiple consecutive payments. This can potentially lead to lawsuits and will definitely lead to a lowered credit score. Because of this, some people opt to work with a debt settlement company to try and avoid excessive risk and negotiations.
When bad things happen while in the Freedom Debt Relief program, you may want to cancel.
Regardless of what you decide to do, give our team a call! We can help you analyze your current situation and decide what might work best for you. We love giving unbiased advice. Be sure to reach out!
