A government agency alleges in a lawsuit filed in federal court in Los Angeles that a Costa Mesa debt-relief company conned consumers and charged them illegal fees.
Morgan Drexen Inc. deceived customers by claiming there would be no upfront fees charged and that they would be debt-free in months, which were lies, lies, lies, according to the U.S. Consumer Financial Protection Bureau.
The suit produced a statement from Morgan Drexen attorney Randall K. Miller (via City News Service) that claims his company “is a support services company not a debt-settlement company.”
According to the company's PR machine: “Morgan Drexen, Inc provides integrated legal services and administrative support to attorneys throughout the nation; who represent consumers facing the scar of bankruptcy.”
Miller also reportedly denies fees are charged to Morgan Drexen consumers.
Yeah, buddy, tell that to the more than 22,000 customers dinged with millions of dollars in illegal fees, the government complaint essentially states. Besides charging for services before debts were settled–a no-no under federal law–no actual services were provided, according to the suit.
As a preemptive strike, Morgan Drexen filed a lawsuit of it own last month in Washington, D.C., claiming the U.S. Consumer Financial Protection Bureau is unconstitutional.