So what is the truth about Mogan Drexen? On one hand they claim, as was stated in the recent West Virginia Attorney General suit about them to “merely provide paralegal services to lawyers engaged in debt settlement activities on behalf of clients.”
Even their own website says:
Morgan Drexen provides integrated legal software and paralegal services to attorneys across America. The Company serves a network of attorneys who work with near bankrupt or bankrupt consumers. The highly-automated IT systems for complex documentation use competent, well- trained and supervised paraprofessionals and administrative personnel in a single location. This allows for improved productivity, efficiency and affordability of attorneys’ legal services. – Source
Supporting more than 35 law firms nationally it is important that we understand and stay up-to-date with changes that affect the attorneys we support. Debt Resolution, Administration Law, Appellate Practice and Criminal law are just some of the areas in which Morgan Drexen provides support to the nation legal community. – Source
By their indications it appears that Morgan Drexen has become nothing but a back office support company for attorneys offering debt relief services. But they do claim they also provide support for other legal practices and areas such as “Administration Law, Appellate Practice and Criminal law.”
In an old shot across the bow to the FTC saying “You don’t have the power to regulate what we do,” Morgan still has the following message on their about us page.
So they claim to either fully comply with the new consumer protection rules or “are exempt from its application.” It looks like they are going with the exempt claim.
So imagine my surprise on May 28, 2011 as I was loafing around watching television on my iPad when a Morgan Drexen television commercial came on selling debt settlement services. Here are some screen captures from that commercial.
From the Morgan Drexen commercial, you can see their logo in the bottom left, next to the number 888-533-2809, it sure appears they are more than a simple back office administrative company. In fact it looks like they are making some pretty bold statements that a company under the FTC telemarketing sales rules would shy away from making:
- Become Debt Free
- Free Credit Score & Credit Report
- Be Debt Free in Months
- As low as $167 a month
- Erase Your Debt
- Live Debt Free
The last slide is interesting since they appear to be advertising a Legal Service Catalog. I’m curious if the same reason they are pushing a catalog, like DMI / Credit Answers is to hedge their bets and try to claim the catalog exemption under the FTC telemarketing sales rules designed to protect consumers.
Whatever the disclaimer was at the end of the commercial, it was worthless, since it was illegible.
I called the number in the commercial and it was answered by a representative that identified himself as a Morgan Drexen representative and when I asked who Morgan Drexen was he said “Morgan Drexen actually provides administrative support services to law firms.” I guess “administrative support” now includes running television commercials, having sales representatives answering the phone and qualifying consumers for legal services so i could be sent information about the services they would offer me.
I must be getting old, in my day administrative support was data entry, filing, copying, and answering general phone calls, not sales.
What do you think, is Morgan Drexen an innocent back office company that only provides paralegal support services for attorneys offering debt settlement services or are they playing a much more active part?
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Jason,
The TSR excludes from the definition of telemarketing: the solicitation of sales through the mailing of a catalog which: contains a written description or illustration of the goods or services offered for sale; includes the business address of the seller; includes multiple pages of written material or illustrations; and has been issued not less frequently than once a year, when the person making the solicitation does not solicit customers by telephone but only receives calls initiated by customers in response to the catalog and during those calls takes orders only without further solicitation.
Here is the thing that really gets me. From a consumer standpoint. Anyone claiming to be exempt so they can still charge all their fees upfront is not a program a consumer should even consider, period. As far as I am concerned, “exempt” is an easy red flag word for a consumer to know to not even waste their time with that company.
So they claim to be exempt and continue to charge huge fees upfront to consumers. What happens if they are eventually shut down by regulators because regulators do not agree with their exemption status? All those consumers who paid all those fees are screwed.
So my point is, as a consumer, why even take the chance? Especially when there are many other companies who will offer a better service for less money.
Take your time, investigate many companies and I guarantee Morgan Drexen will never be at the top of your list once you see the better options available to you.
Here is the thing that really gets me. From a consumer standpoint. Anyone claiming to be exempt so they can still charge all their fees upfront is not a program a consumer should even consider, period. As far as I am concerned, “exempt” is an easy red flag word for a consumer to know to not even waste their time with that company.
So they claim to be exempt and continue to charge huge fees upfront to consumers. What happens if they are eventually shut down by regulators because regulators do not agree with their exemption status? All those consumers who paid all those fees are screwed.
So my point is, as a consumer, why even take the chance? Especially when there are many other companies who will offer a better service for less money.
Take your time, investigate many companies and I guarantee Morgan Drexen will never be at the top of your list once you see the better options available to you.
What is the catalog exemption?
What is the catalog exemption?
Jason,
The TSR excludes from the definition of telemarketing: the solicitation of sales through the mailing of a catalog which: contains a written description or illustration of the goods or services offered for sale; includes the business address of the seller; includes multiple pages of written material or illustrations; and has been issued not less frequently than once a year, when the person making the solicitation does not solicit customers by telephone but only receives calls initiated by customers in response to the catalog and during those calls takes orders only without further solicitation.