Freedom Debt Relief is one of the largest debt settlement companies in the United States. The Consumer Financial Protection Bureau is suing Freedom Debt Relief. Freedom Debt is accused by the Consumer Financial Protection Bureau of engaging in misleading and unethical activities that have resulted in consumers being hurt. The CFPB is seeking monetary relief as well as civil penalties against Freedom Debt.
The CFPB alleges that Freedom Debt Relief did not warn consumers about their right to withdraw from the program and receive a refund. The company also claimed that it misled customers regarding the savings they would get from their debts. It also states that the company failed inform customers that their money was kept in an account that was theirs.
According to the CFPB, Freedom Debt Relief violated several consumer protection laws including the Telemarketing Sales Rule and the Consumer Financial Protection Act. The company is also accused of engaging in high-pressure selling tactics and fraudulent activities. The CFPB is seeking monetary relief and injunctive relief.
The New York State Attorney General's Office has also sued Freedom Debt Relief. They claim that the company failed to provide clients with adequate notice of their rights to withdraw from the program and that it harmed many consumers. Freedom is also accused of making false statements regarding the company's ability negotiate with creditors.
Freedom is not transparent regarding the billing or payment process. This is because Freedom did not have access to the consumer's account. They negotiate with the creditors to reduce the customer's debt when they are part of the program. Freedom will collect the full fee if the creditor refuses negotiations. This does not always happen.
Freedom Debt Relief has been accused of charging upfront fees even though the debt is not yet settled. This was because the company said that it was not allowed charge the customer until the debt had been settled. Many of the clients who signed up for the program ended losing the money they had saved. If the company had told clients that they could have withdrawn from the program and received a refund, this may have prevented some of the fraud.
Freedom Debt Relief also has a problem with their ownership structure. Andrew Housser (the company's cofounder and coCEO) continues to manage the company's operations. He also approves its policies. He was also reported to have known that Freedom's creditors weren't willing negotiate with him. According to some reports, he knew that Freedom was taking payments directly from consumers but was not willing to negotiate with the creditor.
The lawsuit was brought forth by Freedom because of its unethical and deceptive business practices. People who have had similar problems with Freedom are encouraged to consult a lawyer about their rights. A lawyer can help you create a strategy and gather evidence to support your case.
FAQ
Why is personal financial planning important?
For anyone to be successful in life, financial management is essential. We live in a world with tight finances and must make tough decisions about how we spend our hard earned cash.
So why should we wait to save money? Is there anything better to spend our energy and time on?
Both yes and no. Yes because most people feel guilty about saving money. No, because the more money you earn, the more opportunities you have to invest.
If you can keep your eyes on what is bigger, you will always be able spend your money wisely.
Controlling your emotions is key to financial success. Negative thoughts will keep you from having positive thoughts.
You may also have unrealistic expectations about how much money you will eventually accumulate. This is because your financial management skills are not up to par.
After mastering these skills, it's time to learn how to budget.
Budgeting is the act of setting aside a portion of your income each month towards future expenses. Planning will help you avoid unnecessary purchases and make sure you have enough money to pay your bills.
You now have the knowledge to efficiently allocate your resources and can start to see a brighter financial future.
Which side hustles have the highest potential to be profitable?
A side hustle is an industry term for any additional income streams that supplement your main source of revenue.
Side hustles are very important because they provide extra money for bills and fun activities.
In addition, side hustles also help you save more money for retirement, give you time flexibility, and may even increase your earning potential.
There are two types side hustles: active and passive. Online businesses like e-commerce, blogging, and freelance work are all passive side hustles. You can also do side hustles like tutoring and dog walking.
Side hustles are smart and can fit into your life. Start a fitness company if you are passionate about working out. If you love to spend time outdoors, consider becoming an independent landscaper.
You can find side hustles anywhere. Find side hustle opportunities wherever you are already spending your time, whether that's volunteering or learning.
If you are an expert in graphic design, why don't you open your own graphic design business? Or perhaps you have skills in writing, so why not become a ghostwriter?
You should do extensive research and planning before you begin any side hustle. If the opportunity arises, this will allow you to be prepared to seize it.
Remember, side hustles aren't just about making money. Side hustles are about creating wealth and freedom.
There are so many ways to make money these days, it's hard to not start one.
What is the best way for a side business to make money?
If you want to make money quickly, it's not enough to create a product or a service that solves an individual's problem.
You need to be able to make yourself an authority in any niche you choose. It means building a name online and offline.
Helping others solve problems is the best way to establish a reputation. So you need to ask yourself how you can contribute value to the community.
Once you answer that question you'll be able instantly to pinpoint the areas you're most suitable to address. Online earning money is possible in many ways. However, these opportunities are often highly competitive.
But when you look closely, you can see two main side hustles. The first type is selling products and services directly, while the second involves offering consulting services.
Each approach has its pros and cons. Selling products or services offers instant gratification, as once your product is shipped or your service is delivered, you will receive payment immediately.
But, on the other hand, you might not have the success you desire if you do not spend the time to build relationships with potential clientele. Additionally, there is intense competition for these types of gigs.
Consulting can help you grow your business without having to worry about shipping products and providing services. However, it takes time to become an expert on your subject.
In order to succeed at either option, you need to learn how to identify the right clientele. This takes some trial and errors. But it will pay off big in the long term.
How do wealthy people earn passive income through investing?
There are two ways you can make money online. The first is to create great products or services that people love and will pay for. This is called earning money.
A second option is to find a way of providing value to others without creating products. This is called passive income.
Let's suppose you have an app company. Your job is development apps. Instead of selling apps directly to users you decide to give them away free. This business model is great because it does not depend on paying users. Instead, your advertising revenue will be your main source.
To sustain yourself while you're building your company, you might also charge customers monthly fees.
This is how internet entrepreneurs who are successful today make their money. They focus on providing value to others, rather than making stuff.
What is the distinction between passive income, and active income.
Passive income is when you earn money without doing any work. Active income requires work and effort.
Active income is when you create value for someone else. When you earn money because you provide a service or product that someone wants. Examples include creating a website, selling products online and writing an ebook.
Passive income is great because it allows you to focus on more important things while still making money. Most people aren’t keen to work for themselves. People choose to work for passive income, and so they invest their time and effort.
Passive income isn't sustainable forever. If you wait too long before you start to earn passive income, it's possible that you will run out.
If you spend too long trying to make passive income, you run the risk that your efforts will burn out. It is best to get started right away. If you wait until later to start building passive income, you'll probably miss out on opportunities to maximize your earnings potential.
There are three types to passive income streams.
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There are several options available for business owners: you can start a company, buy a franchise and become a freelancer. Or rent out your property.
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These include stocks and bonds and mutual funds. ETFs are also investments.
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Real Estate - These include buying land, flipping houses and investing in real estate.
How can a beginner make passive money?
Learn the basics and how to create value yourself. Then, find ways to make money with that value.
You may have some ideas. If you do, great! However, if not, think about what you can do to add value to the world and how you can put those thoughts into action.
Online earning money is easy if you are looking for opportunities that match your interests and skills.
For instance, if you enjoy creating websites or apps, there are lots of ways that you can generate revenue even while you sleep.
If you are more interested in writing, reviewing products might be a good option. Or if you're creative, you might consider designing logos or artwork for clients.
Whatever you decide to focus on, make sure you choose something that you enjoy. If you enjoy it, you will stick with the decision for the long-term.
Once you have found a product/service that you enjoy selling, you will need to find a way to make it monetizable.
This can be done in two ways. The first is to charge a flat-rate for your services (like freelancers) and the second is per project (like agencies).
In each case, once your rates have been set, you will need to promote them. This includes sharing your rates on social media and emailing your subscribers, as well as posting flyers and other promotional materials.
Keep these three tips in your mind as you promote your business to increase your chances of success.
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When marketing, be a professional. You never know who will be reviewing your content.
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Know what your topic is before you discuss it. False experts are unattractive.
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Avoid spamming - unless someone specifically requests information, don't email everyone in your contact list. If someone asks for a recommendation, send it directly to them.
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Make sure to choose a quality email provider. Yahoo Mail, Gmail, and Yahoo Mail are both free.
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Monitor your results. Track who opens your messages, clicks on links, and signs up for your mailing lists.
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How to measure ROI: Measure the number and conversions generated by each campaign.
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Get feedback. Ask friends and relatives if they would be interested and receive honest feedback.
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To find out which strategy works best, you can test different strategies.
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Learn new things - Keep learning to be a marketer.
Statistics
- While 39% of Americans say they feel anxious when making financial decisions, according to the survey, 30% feel confident and 17% excited, suggesting it is possible to feel good when navigating your finances. (nerdwallet.com)
- U.S. stocks could rally another 25% now that Fed no longer has ‘back against the wall' in inflation fight (marketwatch.com)
- According to a June 2022 NerdWallet survey conducted online by The Harris Poll. (nerdwallet.com)
- Etsy boasted about 96 million active buyers and grossed over $13.5 billion in merchandise sales in 2021, according to data from Statista. (nerdwallet.com)
- These websites say they will pay you up to 92% of the card's value. (nerdwallet.com)
External Links
How To
How to make money when you're sleeping
To be successful online, you need to learn how to get to sleep when you are awake. This means you need to be able do more than wait for someone else to click your link or purchase your product. You must make money while you sleep.
You will need to develop an automated system that generates income without having to touch a single button. This requires you to master automation.
It would be beneficial to learn how to build software systems that do tasks automatically. So you can concentrate on making money while sleeping. You can even automate the tasks you do.
This is the best way to identify these opportunities. Start by listing all of your daily problems. Next, ask yourself if there are any ways you could automate them.
Once you do that, you will probably find that there are many other ways to make passive income. Now, you have to figure out which would be most profitable.
If you're a webmaster, you might be able to create a website creator that automates the creation and maintenance of websites. Perhaps you are a graphic artist and could use templates to automate the production logos.
Or, if you own a business, perhaps you could create a software program that allows you to manage multiple clients simultaneously. There are hundreds of possibilities.
Automation is possible as long your creative ideas solve a problem. Automation is the key to financial freedom.