Based in Dallas, TX Financial Freedom of America is a debt settlement company that supplies negotiation services for clients struggling with high levels of unsecured debt. In addition to providing the basic negotiation services Financial Freedom of America stresses the importance of educating clients to help then not only get out of debt but take the steps necessary to ensure future financial stability.
Here are some quick facts about Financial Freedom of America:
Company Founded: January 2006
Years In Business: 3 years
BBB Rating: F
BBB Complaints: 79 complaints in 36 month reporting period.
Fee Information: contact Account Executive for more information.
Escrow Available?: Yes
Source of Funds: client savings account or special purpose account .
Fee Structure: Monthly maintenance fee, administrative fee and negotiation fee.
Avg. % Settled: 40%-60% of debt entered
Refund Policy: unknown
Minimum Debt Required: $10,000 unsecured debt
About the Company:
Financial Freedom of America (FFoA) has been operating since January 30, 2006 and has to date settled over $48 million in debt. In that time they have helped 530 individuals complete their program. As a result of either good work or the tough economy FFoA is currently working with close to 5,000 clients. This company stresses the importance of enrolling only clients who could not resolve their debt problems via another alternative. FFoA has over 100 employees with each of their debt negotiators and managers certified through the International Association of Professional Debt Arbitrators (IAPDA). This company currently has an F rating with the Better Business Bureau with the main reasons listed for this rating being: the length of time the business has been in operation, the number of complaints this business has received and the industry in which the company operates. This company does not operate in all states therefore the program may not be available to all individuals.
The Program:
FFoA offers the standard debt settlement program. To qualify your financial situation will be evaluated by the Review Board and you must have at least $10,000 in unsecured debt. Upon acceptance in the program you will be required to complete a Welcome Kit. At one point in their website they mention the option of self saving or opening a special purpose account, however most of the language is geared toward a special purpose account. The first few months payments are primarily made to cover administrative fees. Once your administrative fees have been paid your monthly payments then begin to accumulate until you have enough money set aside to negotiate a settlement. This process continues until all debts are paid. They include a final step after settlements are complete, to discuss how you can proceed in the future to avoid making the same mistakes that may have gotten you in debt in the first place.
Website Experience:
This company recently launched a new and improved website. I recall looking over this company in the past to prepare a review and the information available at that time was almost non-existent to the point that I concluded I couldn’t do a review based on the information provided. That is no longer the case. The new website is fantastic (compared to the original site). There is certainly no lack of information at this point. Most of the information provided is standard for the industry, however they have made the effort to disclose as much information about the process and the company in general as possible. I like the sections they have added that stress consumer rights during the debt collection process and the glossary of terms that helps visitors who may be unfamiliar with the process. Visitors will also find a disclaimer of sorts on the bottom of each page which stresses the fact that debt settlement is not for everyone and the importance of understanding the process completely before enrolling. As far as websites go, I like this one and the language they use when addressing common debt settlement issues.
That being said, this company still has a F rating with the Better Business Bureau and several reviews throughout the net that suggest past clients were unsatisfied with their performance as a company. Like all debt settlement companies it is often hard to determine if the company is in fact a scam or if clients enrolled in the program did not have a clear understanding of the process. Based on the website alone, they appear to be on the up and up, however potential clients cannot judge a company by their website alone. Further information would have to be provided to determine if this company is trustworthy or another in a long list of settlement companies out to make a buck off of individuals facing a financial hardship.
Conclusion
Our goal is to help consumers get their financial lives in order. No matter what the circumstances you find yourself in, there are simple things you can do TODAY to help you Erase Debt, Spend Less, and Earn More 
We were delighted to see this review of our new and improved Web site and excited you saw the educational tone we intended our Web site to deliver to the consumer. Many thanks for the review.
We are a debt settlement company located in Dallas, Texas. Financial Freedom of America’s mission is to eliminate unsecured debt for each client and offers a viable solution for consumers burdened with unsecured credit card debt. Debt settlement is an alternative to bankruptcy for consumers in a hardship situation. FFoA completes an extensive review on the consumer to qualify them before enrolling them in a debt relief program.
FFoA’s Debt Negotiators are Certifed Debt Arbitrators through the Internal Association of Professional Debt Arbitrators (IAPDA). We offer a Client Assurance Program and proudly stand behind our Code of Ethics.
To set a standard of excellence for our work, we are an accredited member of the United States Organization for Bankruptcy Alternatives (USOBA) and a certified member of BSI Management Systems America.
Consumers should always remember that debt settlement is an aggressive debt relief program, but a program that can offer real results to clients who complete the process.
FFoA is pleased to have settled almost 10,000 accounts for our clients and over 50 million dollars in debt since our inception in 2006.
There are many misconceptions about the debt settlement industry and unfortunately, this is a result of companies that promise results they don’t deliver. You need to research the company you decide to partner with, so there are some important issues to keep in mind when selecting a company.
One thing to look at is the company’s fee structure. If the company front loads all their fees (collects the majority of their fees upfront before service is rendered) and does not collect any performance driven fees on the back end, you should probably investigate further.
A debt settlement company should have a refund policy in place if the client decides at any point throughout the process that the program is no longer in their best interest.
Any consumer who contacts FFoA and through a detailed analysis both parties determine bankruptcy is in the consumer’s best interest, FFoA will help put them on that path. However, it is important to keep in mind that bankruptcy can have long lasting effects on a consumer. In the words of Dave Ramsey, “Bankruptcy is listed in the top 5 life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one.”
A debt settlement program is never a walk in the park, but with determination and hard work, you can rid yourself of the stress and anxiety associated with credit card debt through the assistance of a debt settlement company.
Dear Trisha,
The company Financial Freedom of America out of Dallas is a ripoff organization. This company has been ordered to cease and refrain from doing business in the State of California since August, 2009, as you can see from the Order which is published on the internet. I have spoken with the CA Dept. of Corporations about this company and they are not suppose to be soliciting customers or doing business in CA since the order was put in place, and there is hearing scheduled for this for February, next year. Too bad for many, like me, that hearing will be too late. In spite of the fact that I told this company that my husband, an 80 year old man, who signed up with them unknown to me in early Nov. (3 months after the Order to desist was given them) lacked the capacity to enter into a contract like that, this company refused to talk with me and began taking drafts out of our checking account. They told him to “stop paying his bills” and that they had stimulus money from Obama to cut his bills in half, if he would “stop paying his bills” and send them the money he would use to pay our debts. They told me in a phone call where I inquired independently about their service, they take money from people each month and place it in a bank account with the customer and their name on it, and that the customer has access to that money since it is their bank account. This account is located in Oklahoma. This is not true. They told me there was a 30 day full refund rescission period on the contract as well when I called. When I discovered, after some research, what a scam company they were, my husband called to tell them he wanted to cancel within the 30 day period, and they refused to do it. They told him, he would have to talk with a supervisor first. They said a supervisor would have to call him back. A supervisor never did. He sent a certified letter telling them he wished to cancel. Then they called saying he would have to send a note from his attorney and that he would have to call them to be explained how much of the money he would be entitled back. The girl, Jamie Morgan, refused again to talk with me about the company’s policy, saying she wasn’t obligated to talk with me eventhough I was asking her to verify what the company’s standard refund policy was, she refused and hung up, for the second time.
I sincerely hope that consumers everywhere will stay away from these wretched people. People would be better off filing bankruptcy than having this company, or other’s like it, take their money.
At Financial Freedom of America (FFoA), we always respect the privacy and wishes of our clients.
When Mrs. Bonnie Stanley called to speak to a FFoA representative in regards to Mr. Marion Stanley’s account, we politely declined on behalf of our client’s wishes. Previous to her request, Mr. Stanley instructed us not to discuss his FFoA account with Mrs. Stanley. Mr. Stanley advised our company that he and Mrs. Stanley were in the process of a divorce and given the circumstances, he did not want her to gain any access to his FFoA account.
With that being said, we’d like to take the opportunity to clear the record on the many untruths Mrs. Stanley wrote about FFoA on several Web sites.
Below you will find the claims made by Mrs. Stanley followed by FFoA’s response to her false accusations:
1. “…Financial Freedom of America is a rip-off organization.”
FFoA’s Response:
To date, FFoA has over 5,000 graduated and active clients, and has settled over $66 million in unsecured debt on behalf of our clients.
To set a standard of excellence for our work, we are an accredited member of the United States Organization for Bankruptcy Alternatives (USOBA), whose mission is to advocate for fair regulation and protection of consumers. Our President and CEO, Corey T. Butcher, is a leader in this industry. He serves on the board of USOBA and consults with the organization to develop state-specific agendas.
Furthermore, Financial Freedom of America is certified by BSI Management Systems America, verifying we operate a quality management system that complies with the requirements of USOBA’s best practice standard. Additionally, all of our Negotiators, Managers and Directors are certified through the International Association of Professional Debt Arbitrators.
2. “This company has been ordered to cease and refrain from doing business in the State of California since August, 2009…”
FFoA’s Response:
FFoA is registered through the State of California’s Secretary of State and is legally able to conduct business in the State of California.
The Desist and Refrain Order does not prohibit FFoA from conducting business in the State of California, but questions whether or not we should be operating with or without a Proraters license. To date, we have had good communication with the California Department of Corporations and we are working diligently to prove a Proraters license is not needed for the way in which we conduct business.
3. “…they are not supposed to be soliciting customers or doing business in CA since the order was put in place, and there is hearing scheduled for this February, next year.”
FFoA’s Response:
Please see our response to claim number 2. Furthermore, a hearing is scheduled for February 2010 as part of the standard legal process, but not because we are illegally conducting business in the State of California.
4. “…this company refused to talk with me and began drafts out of our checking account.”
FFoA’s Response:
We only refused to speak to Mrs. Stanley in regards to Mr. Stanley’s account out of respect for his privacy and wishes. At the time Mrs. Stanley called FFoA, we had not drafted a payment from Mr. Stanley.
5. “They told him (Mr. Stanley) to “stop paying his bills” and that they had stimulus money from Obama to cut his bills in half, if he would “stop paying his bills” and send them the money he would use to pay our debts. [sic]”
FFoA’s Response:
We never instruct consumers to stop paying their bills, but we do inform them that our most successful clients discontinue paying unsecured debts enrolled in our program. Additionally, we have never used a past or present President or any other government official for the purpose of soliciting our services to consumers.
6. “They told me in a phone call where I inquired independently about their service, they take money from people each month and place it in a bank account with the customer and their name on it, and that the customer has access to that money since it is their bank account [sic]. The account is located in Oklahoma. This is not true”
FFoA’s Response:
Global Client Solutions, a third party payment processor, drafts payments from the client’s checking account and deposits the funds into the client’s special purpose account. The client’s special purpose account is held by the Bank of Oklahoma and is in the client’s name. Our clients receive monthly statements from the Bank of Oklahoma and every client has access to their account 24 hours a day, 7 days a week.
7. “…my husband called to tell them he wanted to cancel within the 30 day period, and they refused to do it.”
FFoA’s Response:
Mr. Stanley enrolled in FFoA’s Debt Negotiation program on October 30, 2009 and cancelled our services on November 30, 2009. Due to our 30 day Right of Rescission policy, once Mr. Stanley cancelled our services, he received a full refund. Mr. Stanley stated he would be re-enrolling after his divorce has been finalized.
8. “Then they called saying he would have to send a note from his attorney and that he would have to call them to be explained how much of the money he would be entitled back.”
FFoA’s Response:
As part of our cancellation procedure, we do request a certified letter be mailed to us. This letter is kept in our records and is for the protection of our clients and their wishes. As part of the company’s 30 day Right of Rescission policy, a full refund was issued to Mr. Stanley once he was successfully cancelled from our program.
9. “The girl Jamie Morgan refused again to talk with me about the company’s policy, saying she wasn’t obligated to talk with me even though I was asking her to verify what the company’s standard refund policy was, she refused and hung up, for the second time. [sic]”
FFoA’s Response:
The FFoA Representative Mrs. Stanley is referring to is Jamie Moore, not Jamie Morgan. As part of our compliance guidelines, all incoming and outgoing calls are recorded and have been reviewed accordingly. Mrs. Stanley spoke to Mrs. Moore in a very unprofessional manner, and to respect the privacy of our client, Mrs. Moore stated she could not speak about Mr. Stanley’s FFoA account with her.
10. “People would be better off filing bankruptcy than having this company, or others like it, take their money.”
FFoA’s Response:
FFoA is still trying to verify whether Mrs. Stanley is a licensed attorney in the State of California in order to justify her above legal advice.
In closing, FFoA takes all our client’s complaints, requests and wishes very seriously and we always seek the best possible resolution for our clients. As you can see, Mrs. Stanley was never a client of FFoA, therefore, has no right to make the false claims in her comment. FFoA has been speaking to attorneys with regards to whether Mrs. Stanley violated any laws. She will be contacted in the near future by both an Executive of FFoA and legal counsel acting on behalf of FFoA.
We will explore all legal avenues in dealing with Mrs. Stanley in regards to this matter. If anyone has any further questions or comments, they may contact the FFoA Management Team at info@4ffoa.com or via the “contact us” form on our Web site at http://www.financialfreedomofamerica.com.
Very Respectfully,
Financial Freedom of America
After reading Mr. Butcher’s responses to the many things that I said I had to chuckle because in many cases, he verified my statements. After speaking with him at great length about they way his company does business, I was only more convinced of my opinions concerning this company.
Concerning privacy, Mr. Butcher started out his comments saying “we respect the privacy and wishes of all of our clients…” so can I assume in that remark that my husband Marion Stanley wanted the blog world to see that he was a client of a debt restructuring company or a former client? What do you think? Would you? Do you think that is respect of privacy. Personally, I don’t. You decide. Furthermore, do you think Mr. Stanley or I asked him to talk about his divorce. What do you think? You decide.
Moving on, Mr. Butcher conveniently evaded the issue of my comment that the company refused to discuss with me their refund policy when I simply asked them general questions about it not pertaining to my husband’s account. Jamie Moore refused saying she couldn’t talk to me about his account when I kept repeatedly saying I don’t want information about his account, I am just asking what the general refund policy is. She simply repeated the same statement again and again that she couldn’t reveal information about “his” account several times until I got irrate – as any rational person would – then she hung up.
California, in case many of you do not know it, is a community property state, as many states are. In this state, one’s spouse cannot go and sign contracts that will affect both parties’ credit rating and ability to purchase – that includes filing bankruptcy – with other companies. It also includes buying real estate, getting loans, taking money out of IRA’s or other policies without the other parties knowledge or consent. I have consulted with other financial people about this in this state, and they agree with me on this issue although I have not spoken with an attorney about it. It would be highly advisable it is something that every thinking person should check up on as it only makes sense that something affecting both parties’ ability to purchase, along with their financial status in a community property state would keep these contracts from being able to be signed by a spouse without the other spouse’s knowledge or consent. I informed Mr. Butcher’s company of this from the beginning, but they were not in the least bit interested in hearing it. They kept saying we cannot discuss his account with you.
As far as the refund policy, Mr. Butcher explains in his response that my husband was immediately granted his refund when he asked for it. Then, he later contradicts his statement by saying that it is required for someone to have a letter sent to him to terminate the program and get their money back (when they called on the phone they told me it had to be from his attorney). So, I encourage the reader to read between the lines. He claims that a person has access to their money 24 hours a day 7 days a week. If that were true, why would anyone have to send a letter to access their money? He contradicts his own statements.
The fact is my husband requested to terminate I believe, sometime in November, and he did not get a refund as I recall until January and that was only a partial refund, with the rest coming some weeks later. Mr. Butcher claimed he was sent out a Fed Ex letter right away but he did not get notice for it during that time.
And yes, according to my husband of 80, he was told they had “stimulus money” available. I have noticed many debt restructuring companies advertising a “stimulus program”. This is designed to deceive unsuspecting people of thinking there is stimulus money – people like my spouse of 80 who is hard of hearing and who clearly was mislead into believing that.
The more I heard from Mr. Butcher about the program the worse it got. Basically, he explained that a person with, for example, $30000 in debt, will accumulate approximately $6000 in late fees and finance charges from not paying their debts when all is said and done, and yes they are told not to pay their debts. I myself can attest to that because when I called once posing as an interested party I was given an account manager who told me I would have to be willing to stop paying my credit cards, which meant my credit score would go in the tank. Then after a certain amount of money has accumulated in the third party account, negotiations with creditors’ begins. The bargaining tool they use, is that the client has simply stopped paying their debts. It goes without saying that no credit card company is going to be willing to negotiate away half your unsecured debts if you are making the payments on them. Mr. Butcher himself explained that to me.
Plus, FFOA charges 10% off the top of all the debts. That money is taken out of your account first, after the 30 day recission period. So, your debts have now gone from being $30000 to nearly $40000 counting all the late fees and finance charges too. Then he claimed they negotiate that amount in half – down to $20000. In essence, they have only saved you $10000, and in the meantime your credit is tanked and good luck trying to get another credit card, or trying to buy a house or anything else at a decent interest rate.
Worse yet, is that once FFOA has taken their 10% fee off of the top, if one cannot finish the program after that, and many cannot due to loss of income or other reasons, they are out all that money, plus they have all the late fees, finance charges, and the principal debts, while their rates have skyrocketed due to nonpayment.
In our case, my husband stopped paying a credit card that we had a 2.99% interest rate on for the life of the loan, causing us to lose that rate which turned to a much higher rate – the prime, I believe. That will add up to countless hundreds of dollars by the time that debt is paid off. And Mr. Butcher wants to sue me? I have much more of a case against him than he has against me.
As far as defamation and libel are concerned, one has the right to print information that is true. That is an exception to defamation.
If he claims that Jamie Morgan’s name is Jamie Moore, then my apologies. It sounded like “morgan” in our conversations.
The cease and desist order from the Dept. of Corporations, (whom I spoke with personally about this) is printed on line, anyone can Google it.
I find it interesting that I was called and basically threatened with a defamation suit from him. I would encourage him and other businesses like his, to simply review the BBB rating of his company. That speaks volumes. Rather than spending time threatening people with defamation suits unless they unprint what they printed about their experience with the company, why not improve the company’s business tactics and product.
Mr. Butcher mentioned he was lobbying the governors’ office in CA and in Washington to try and get friendlier legislation for companies like his. I would imagine one would have to lobby a lot for something like that. That is what the gaming casinos did to get their operations into mainstream America.
Concerning Bankruptcy as an alternative, I was surprised to find that Mr. Butcher himself told me in our conversation after I first posted on this blog, that bankruptcy is a better alternative than his program of debt restructuring if one qualifies for it. Many do not qualify for it, according to him.
I encourage you to take my words as opinion, except for the facts stated, and research this for yourself. Call the company and see what information you get from them. Ask detailed questions. I do not profess to give legal advice, nor have I. This is an opinion blog except for the statements about my personal experience with this company to the best of my recollection.
I’m of mixed feelings regarding FFoA. While I found the process of paying the administrative fees to be a little nerve wracking, they have, so far, resolved two of the six outstanding credit cards that I was struggling to pay off on my own.
I can’t vouch for other people’s experiences, but I know, for myself, that I did not fully understand the whole process of dealing with a company like FFoA; however, after a bit of patience (almost 9 months due to financial struggles), we are finally past the hurdle of the administrative fees and are seeing success.
FFoA was willing to work with us and hold our account for a few months when we did not have the money to put into the account.
Since they still have four remaining debts to settle for us, I will reserve my final verdict until they have done so, but at the moment, they seem to be delivering as promised.
As a note, from my own experience, companies like FFoA are not for folks who want to keep a good credit score, but if you need the help of a debt resolution company, you probably aren’t in a position to worry about your credit score anyway. The process is a long one, and at first, seemed like it wasn’t going to work, but my wife and I stuck with it long enough to see results. Once we got the first notice from a creditor telling us they’d settled that particular debt, we breathed a little sigh of relief. When we received a notice from a second creditor, stating the same thing, we were even more relieved.
Hopefully, the sighs of relief will become more frequent.