Class Actions

Morgan Drexen, Inc. Investigation
 

Wasserman, Comden, Casselman & Esensten L.L.P. is currently investigating alleged improper business practices by Morgan Drexen, Inc., in conjunction with a putative class action currently pending in the United States District Court for the Central District of California.

Morgan Drexen advertises itself as "a company that provides administrative legal support and services to law firms that want to provide debt settlement services to its clients." Morgan Drexen allegedly contracts with various attorneys and law firms to provide such services, and allegedly centralizes its advertising efforts on its use of attorneys in the debt settlement program.

However, in the lawsuit, Plaintiffs allege that Morgan Drexen does not actually use attorneys in the negotiation process. It is alleged that Morgan Drexen fails to disclose to consumers that Morgan Drexen, and not the attorneys, actually negotiates the debt on behalf of Morgan Drexen's clients. It is further alleged that Morgan Drexen uses only the names of the attorneys, with whom they contract, in order to avoid and circumvent laws preventing unlicensed non-attorneys from negotiating debts on the behalf of consumers.

The investigation also involves whether Morgan Drexen unlawfully pays itself with client funds before creditors. As part of Morgan Drexen's debt settlement program, the consumer makes monthly payments via electronic fund transfer ("EFT") or automatic check handling ("ACH") to Morgan Drexen, who then collects money until there is enough to make settlement offers to a creditor. However, it is alleged that Morgan Drexen withdraws moneys from those accounts to pay itself and the law firms prior to making any settlement offers to creditors. This allegedly causes the client to take longer to settle claims with creditors, leaving the client with destroyed credit.

If you have utilized Morgan Drexen for debt settlement services and have not experienced satisfactory results from these services, have not been able to communicate with your attorney associated with Morgan Drexen, or have had similar experiences, please contact us.

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