Morgan Drexen ratings, reviews and complaints - Debt Relief Services - non-compliant with FTC Rule

Complaints and Resolutions

Complaint Experience

N/A

Complaint Resolution Index (CRI)

Complaint Resolution Index (CRI) Explained The Complaint Resolution Index (CRI) is an indicator on how responsive a company is in addressing and resolving customer complaints brought to their attention by BCA. If they are considering doing business with the company, consumers can use this indicator to forecast the likelihood of having their issues addressed if a problem arises. CRI measures the company's customer satisfaction abilities through BCA’s complaint mediation process.

A variety of factors are considered when calculating CRI. This includes how quickly a company responds to complaints, the number of complaints against a company, whether the company addressed complaint allegations, and the outcome of the complaints. CRI is just a subset of the overall rating for the company. Consumers are encouraged to take into consideration the company's CRI, their overall BCA letter rating and other relevant information about the company so they can make a well-informed purchasing decision.

BCA's Summary and Analysis:

Complainants typically allege misrepresentation of debt consolidation services, inability to settle debts as represented, unfulfilled contracts, and inability to obtain refunds when services are not performed. Some customers complain that although monthly deductions are automatically withdrawn from their bank accounts, their debts remain unsettled and their creditors continue to contact them. Other complainants allege calls to the company to check the status of their case result in the run around. A few customers complain they receive repeated solicitation calls from the company in violation of the "Do Not Call" law. Most complainants request refunds.

The company has refused to cooperate with the BCA's complaint mediation efforts. In the past the company has responded to some complaints by advising the complainant that they do not provide debt settlement services to consumers or contract with consumers for such service. The company claims they provide support services to law firms, one of which the consumer may have engaged. In some cases they respond by advising the complainant that the third party attorney has authorized them to make settlement offers. In a few cases the company agreed to issue refunds or partial refunds or to remove customer names from their calling lists.

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Complaint Closing Statistics

0 complaints against Morgan Drexen closed in last 3 years.

Complaints	Type of response
0	Making a full refund, as the consumer requested
0	Making a partial refund
0	Agreed to make an adjustment
0	Refusing to make an adjustment
0	Refuse to adjust, relying on terms of agreement
0	Unanswered

Other Information

Company Info

Company provides attorney support services for the debt services industry.

Primary Contact:	Heidi Powers (Assistant to legal counsel)
Business Started:	8/13/2007
Social:

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Licensing

We know of no licensing or registration requirement for companies engaged in this company's stated type of business.

Government Actions

Agency: Consumer Financial Protection Bureau
Description:

On March 16, 2016, the Consumer Financial Protection Bureau ("CFPB") won Final Judgment against Morgan Drexen ("Drexen") for running an illegal debt relief scheme. The court found that Drexen violated federal law by charging illegal upfront fees and violated the Telemarketing Sales Rule, Dodd-Frank Act, and Consumer Protection Act by deceptively describing its services. The CFPB investigation charges that when consumers signed up for Drexen services, the company presented them with two contracts, one for debt settlement and the other for bankruptcy-related services. The CFPB charged that consumers who signed up sought services for debt relief and not bankruptcy, that little to no bankruptcy work was actually performed for consumers, and that the bankruptcy related contract Drexen presented to consumers was a ruse designed to disguise illegal upfront fees for debt relief work.

The Final Judgment prohibits Drexen from collecting any further fees from its customers and orders Drexen to pay restitution and a $40 million civil penalty and $132,882,488 in restitution. This Decision follows a stipulated final judgment against Drexen's President and Chief Executive Officer, Walter Ledda, that the court approved in October.

Date of Action: 3/16/2016

Comments and Analysis

Morgan Drexen claims to provide support services to law firms in the debt settlement industry. Although the company contends they do not provide debt settlement services to consumers or contract with consumers for such service, their customers disagree. Customer’s report the company makes monthly deductions from their bank accounts claiming the funds are saved until a sufficient amount is reached to make settlement offers to their creditors.

Our experience with debt negotiating companies is that they attract heavily indebted clients by claiming to be able to settle the client’s calls. They often claim that their services are more effective than those provided by credit counseling services. These companies usually instruct their clients to stop paying their creditors. Some companies direct their customers to make their payments to the debt negotiation company instead and promise when the company has accumulated enough to offer a cash settlement to one or more creditors (which can take as long as two or three years) to pay off the debt. The debtor must pay fees to the service during the time the payments are accumulating. Complaints for this industry typically allege that creditors continue to harass them, fees and interest continue to accumulate, creditors are not contacted, and sometimes the debtor is sued for payment.

The Telemarketing Sales Rule prohibits collecting any fees over the phone before settling debts. Some debt settlement companies may require placing the money saved into a dedicated bank account. The escrow account must be administered by a third party who has no affiliation with the debt settlement company. Before fees can be collected the debt settlement company must successfully renegotiate or settle at least one debt; there must be a written agreement between you and the creditor; and at least one payment must be made to the creditor under the new agreement. The debt settlement company must also disclose all fees and any conditions; the length of time it will take to make an offer for settlement; the percentage of each outstanding debt you must save before an offer is made to the creditors; and the possible negative impact that may occur if you choose not to pay your creditors

Other Considerations

Our files show disconnected phone numbers, returned mail or both. The company appears to be out of business. We cannot trace addresses of companies or principals. General information is available upon request which may assist you.

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Additional Info

DBAs:

Morgan Drexen Integrated Systems

Websites: