In an ongoing situation with the former debt settlement company, Morgan Drexen and the Consumer Financial Protection Bureau (CFPB) it looks as if the effort by successor law firms to service the former Morgan Drexen clients is heading towards a resolution.
Howard Law, P.C., Williamson & Howard, LLP and The Williamson Firm, LLC had made claims or assertions they could continue to service the former Morgan Drexen clients, for a number of reasons. The firms were battling it out with the CFPB and it looked like they were trying to tell the CFPB to take a hike and let them continue to collect money and service the clients.
If you read these past articles you will see how they boldly tried to defend the continued servicing of the consumer accounts.
But in a court document filed on November 9, 2015 the firms appear to say they are out of the debt settlement business. The attorney for the firms said, “The Law Firms have shut down the “debt settlement” part of their practices and the associated wind up process has been difficult, time consuming and expensive.” – Source
Other recent court documents filed by the CFPB have alleged the firms must refund nearly $6 million back to consumers in refunds and another $4.3 million in money paid to creditors. – Source
The exact numbers are being adjusted and the law firms have asked for some consideration to get their last month of client records together. But even then, here is the big problem, “The second part of the above provision directs the Law Firms to remit to the CFPB the fees paid to them by the Affected Consumer after June 18, 2015. As indicated in the email attached to the CFPB’s Status Report, the Law Firms believe this sum is approximately $1.88 million. At the present time, the Law Firms do not have the financial means to pay this sum. Their total available cash is between $50,000 and $90,000 dollars.”
So it doesn’t really matter how many millions of dollars are owed back to consumers since the firms now appear to indicate they are insolvent.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.