CFPB Wins $173 M Award Against Now-Defunct Morgan Drexen
March 21, 2016
The U.S. District Court for the Central District of California last week granted the CFPB’s request for a final judgement against debt relief company Morgan Drexen, Inc., bringing to an end a lawsuit filed by the bureau back in August 2013. The agency alleged that the company and its leadership charged illegal upfront fees for debt relief services and misrepresented their services to consumers. According to the CFPB, when consumers signed up for Morgan Drexen’s services, the company presented them with two contracts, one for debt settlement services and one for bankruptcy-related services. Based on its investigation, the bureau brought suit alleging that consumers who signed up sought services for debt relief and not bankruptcy, that little to no bankruptcy ...