Quick Answer: Morgan Drexen faces legitimacy concerns, with lawsuits filed in at least 10 states alleging the company collected fees without delivering promised debt settlement services. The West Virginia case shows Morgan Drexen took $7,000 from a retired teacher but allegedly never paid her creditors.
Shirley Gao from The Center for Public Integrity just posted a look at the activities of Morgan Drexen in the case of retired schoolteacher Mary Linville from West Virginia. Linville had engaged Morgan Drexen to provide her with debt settlement services and wound up sued by one of her creditors. The West Virigina Attorney General later filed suit against Morgan Drexen using the Linville situation.
I covered this case in detail in the story, Details on Mogran Drexen Lawsuit by West Virginia AG. Allegedly Unlicensed, Unfair, and Unrefunding.
“But Morgan Drexen did not deliver the promised services, Linville claims. Instead, the firm took — and kept — about $7,000 from her checking account but never paid a cent to Discover, Bank of America, Lowes and most other creditors, she said.” – Source
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
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Morgan Drexen insists it is “NOT a debt settlement company,” according to the article. “Morgan Drexen provides a platform where attorneys, clients and businesses can reach amicable solutions together. Clients and their attorneys use this platform in a variety of situations including bankruptcy, personal injury and resolution of claims by creditors,” says Raychel Harvey-Jones, vice president of media relations for Morgan Drexen.
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In the past year, consumers or state officials have filed suit against Morgan Drexen and similar businesses in at least 10 states, including Colorado, Virginia, Washington, New Jersey , Kansas, Ohio, Michigan, New Hampshire , Illinois and West Virginia . The lawsuits accuse the named companies of charging illegal up-front fees, giving clients little or no contact with an attorney, and failing to settle clients’ debts.
If you are interested in reading the full article, you can find it here, Borrower Nightmares: Small town teacher seeks help for big debt, ends up in bankruptcy.
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
Its always, always, always somebody else’s fault. Andy – you created the problem by getting in debt in the first place and you were stupid to think that any company or law firm can just waive a magic wand and think all of your problems will just go away. Nothing is every that easy. Read the contract investigate things before you just get into something. This is the problem with this country. PEOPLE TAKE RESPONSIBILITY FOR YOUR OWN ACTIONS AND STOP BLAMING OTHERS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
This was my issue with Morgan Drexan. They nailed me with fees and dragged their feet in getting my debt settled. The final debt jumped from 16950 to 19600 over night. My payoff went from 7800 to 9800 overnight after they recorded me and they never informed me that they upped my payoff. When I got a letter in the mail I stomped my feet but they blamed Pallisades Collection agency for the increase. I asked them to go fight, thats what I payed them for. They said they dont do that. They are full of it and need to quit running like gangsters that are racketeering or shut their doors.