CFPB Says Morgan Drexen Dupes Consumers Into Illegal Fees
Law360, New York (August 20, 2013, 7:29 PM EDT) -- The Consumer Financial Protection Bureau sued Morgan Drexen Inc. on Tuesday in California federal court, claiming the company collects illegal upfront fees for debt-relief services through a deceptive contract structure and misleads consumers about its ability to eliminate their debts.
The agency says the operations of Nevada-based Morgan Drexen and its CEO Walter Ledda violate the Telemarketing Sales Rule and the Dodd-Frank Wall Street Reform and Consumer Protection Act, claiming the company skirts laws generally forbidding upfront fees by having customers who sign a contract for debt-settlement services also sign a second, purportedly bogus bankruptcy services contract requiring them to pay...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!