Freedom Debt Relief Agrees to Pay Back Consumers After Accusations

Freedom Debt Relief, the largest company of its type in the nation, has agreed to pay nearly $2 million in restitution to resolve allegations it misled consumers in two states.

More than 570 Washington state consumers who signed up for Freedom Debt Relief's services will be eligible for about $800,000 restitution under the state's settlement with the California-based the firm. New York customers will be eligible for a pool of about $1.1 million.

"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," Washington State Attorney General Rob McKenna said in a statement.