CFPB Says if Morgan Drexen Owes You Money You Are Potentially SOL

The Consumer Financial Protection Bureau has finally taken down the old Morgan Drexen website and put up a message of their own. See MorganDrexen.com for the latest version of the CFPB informational message.

But yesterday on the CFPB website they put up advice and information for consumers who were harmed in the Morgan Drexen / Walter Ledda debacle.

The most interesting piece of the information was this true but sad message:

“You have the right to request a refund of any money that is currently in your settlement account. Start by contacting the attorney who worked for you on your debts with Morgan Drexen. The attorney will have access to your settlement account. Because your attorney is required to hold your settlement account as a “trust account,” he or she must provide you with a refund of any money in that account.

The amount of money in your settlement (trust) account will likely be less than what you have paid Morgan Drexen because Morgan Drexen charged you upfront fees. Even though the court ruled that these upfront fees are illegal, the court has not yet decided whether it will order Morgan Drexen to return all the fees that were illegally charged to consumers. Since Morgan Drexen filed for bankruptcy, the bankruptcy process will have to run its course before we know if there will be any money left for consumer refunds.” – Source

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So what consumers will need to do is contact the attorney who “worked” on their case when Morgan Drexen was essentially doing all the backend work. Then, the attorney they were assigned to, who is probably pretty pissed off about the whole issue, will have to provide some assistance to the consumer to recover what illegal money was collected.

But then, the reality is, the only money available for refunds is going to be what was not already drained by Morgan Drexen or the attorney in advance fees. And since Morgan Drexen filed bankruptcy, don’t expect to see a penny of those fees. I’d like to be more hopeful for harmed consumers but history is the greatest predictor of how these situations turn out. And the answer is, not well for consumers owed money.

And for the uncertain number of Morgan Drexen current clients, you’ll have to deal with your creditors on your own now so login to your Morgan Drexen account “to see the status of your debts and payment for your settlements.”

The irony is the login takes you to something called the iAttorney Platform which appears to be a number of attorneys who were associated with Morgan Drexen and now are offering a repackaged service.