Well if you are going to get bad news you might as well get it all at once.
On the heals of a judgment against Morgan Drexen, an asset freeze, and filing bankruptcy, Morgan Drexen also lost an appeal to have the Consumer Financial Protection Bureau declared to be unconstitutional.
I’m not sure what made me curious about what Morgan Drexen had to say about all of the recent events but their website seems deathly silent about all the bad news, including the asset freeze and Chapter 7 bankruptcy filing. Something it seems the public and their customers should be informed about if they are going to cease operations. In fact the asset freeze actually says they are supposed to inform a number of parties.
“VIII. MORGAN DREXEN’S DUTY TO DISTRIBUTE ORDER
IT IS FURTHER ORDERED that Morgan Drexen shall immediately provide a copy of this Order to each affiliate, subsidiary, division, sales entity, successor, assign, officer, director, employee, independent contractor, client company, electronic data host, agent, attorney, spouse, and representative of Morgan Drexen and shall, within ten (10) calendar days from the date of entry of this Order, provide counsel for the Bureau with a sworn statement that: (a) confirms that Morgan Drexen has provided copies of the Order as required by this Section and (b) lists the names and addresses of each entity or person to whom Morgan Drexen provided a copy of the Order.” I guess it doesn’t mention people visiting their website. – Source
But a peak in their latest news section found the last entry was on April 21, 2015 where their Vice President of Media, Joe Lizura, sent out a press release titled, “Mississippi United States Bankruptcy Court Sides With Morgan Drexen and CEO Walter Ledda on Recent Legal Ruling.” Didn’t see such a press release on the fact the ruling has been appealed but who knows, maybe in the future.
It struck me as odd that when I clicked on the link for the VP of Media for Morgan Drexen www.linkedin.com/in/joelizura it takes you to the page for Joe which does not mention Morgan Drexen. Is even their VP of Media jumping ship? Joe’s LinkedIn profile says he is the Executive Director at The Solar Alliance Foundation and the President and CEO of Allowance Media Group. Maybe Joe was just a contractor. Not that important but interesting. – Source
Joe’s LinkedIn profile says he was also a TV weatherman. I wonder which way he thinks the winds are blowing now for Morgan Drexen?
The Orange County Register ran an article today about the recent activity at Morgan Drexen and came up with a similar headline to my previous article about their bankruptcy filing. The irony is not hard to spot. You can read their article at Large Costa Mesa debt settlement company, ironically, files for bankruptcy.
On their website, MorganDrexen.com, they still want visitors to read their open letter.
Their letter says, “November 26, 2014
An Open Letter to America’s Attorneys, Paralegals, Legal Support Staffs, and Providers of Legal Support Services to the Legal Industry Affordable Legal Care in America is under fire by the Consumer Financial Protection Bureau (CFPB) and without quick and decisive action the legal support that millions of Americans need may be eliminated. It is vital that we, as an industry stand together to draw a hard line and demand that our representatives in Congress reign in a bureau that has specifically not been given the legal right to regulate the practice of law.
As a group our message will be unmistakable; affordable legal care for disadvantaged Americans must remain readily available throughout all 50 states, free of restrictions and burdens placed upon it by the Consumer Financial Protection Bureau.
The CFPB was created to help Americans, not to over-regulate them. The CFPB was created to ensure Americans had a voice to be heard amid harassments and abuse from Big Creditors using tactics like “Robo Filing” of lawsuits against them by bank collectors.
Yet in the past 24 months, the very people the CFPB was created to help are being hurt as the CFPB fights to eliminate companies like Morgan Drexen, who provide support services to attorneys, which in turn, allows access to the one thing that can actually help struggling Americans – affordable legal services to combat the abusive tactics being used by skilled, efficiently trained bank collectors.
In 2014, consumer debt has risen to over $11 trillion dollars and just under 15% of those in debt are being pursued by credit collectors. The credit collection companies have harnessed the power of “legal boiler rooms” with thousands of lawsuits being filed for small amounts against disadvantaged Americans with the full knowledge that the individuals in debt will likely not have the money to hire an attorney to represent them. Armed with this knowledge and a support staff numbering in the thousands nationwide, the “Robo Filing” and hard-ball collection tactics often used, will go unchallenged if Legal Administrative Support Companies are forced to close their doors because of the CFPB.
It is indeed time to unite as the nation’s foremost group of professionals and tell our legislators to stand up to the CFPB and tell its Director, Richard Cordray, that restricting companies who aid in allowing disadvantage Americans access to affordable legal services is absolutely off limits.
The CFPB needs to hear our voice and with your help, they will.”
Curiously it appears it wasn’t their constitutional claims about the CFPB that may have been their demise but the court commented alleged manufacturing of evidence in the trial. That didn’t require a reading of the constitution to figure that one out. And ironically, as an alleged legal services company you’d think that wasn’t a lesson they needed to learn. – Source