In 2013, the Consumer Financial Protection Bureau (CFPB) sued debt settlement company Morgan Drexen for collecting illegal “upfront fees” for debt settlement services and for running deceptive advertisements. Shortly before that, the company filed suit against the CFPB, challenging the agency’s investigative authority. The CFPB prevailed in its lawsuit: in April 2015, a federal court ruled against Morgan Drexen and found that the company misled the court and falsified evidence during the lawsuit.
Morgan Drexen went out of business in late June 2015 after filing for bankruptcy. On June 19, 2015, the company shut down its business after a federal court ordered the company to stop collecting money for debt settlement work. The CFPB is now notifying affected consumers about their rights and the actions they should now take. This information is located on the Morgan Drexen website.
Here is what the Bureau is telling consumers:
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