Debt settlement company Morgan Drexen is no longer in business: What you should know
Morgan Drexen has gone out of business. If you are a Morgan Drexen customer, you must take action on your debts. You can also request a refund of any money that is currently in your settlement account.
In 2013, we sued debt settlement company Morgan Drexen for collecting illegal “upfront fees” for debt settlement services and for running deceptive advertisements. We prevailed in our lawsuit: in April 2015, a federal court ruled against Morgan Drexen and found that the company misled the court and falsified evidence during the lawsuit. The court later ruled that Morgan Drexen must stop collecting money from its customers. Morgan Drexen went out of business in late June 2015 after filing for bankruptcy.
Next steps for Morgan Drexen customers
Soon you should receive an official letter and an e-mail explaining how you can protect your rights now that Morgan Drexen is no longer in business. This letter will provide you with information about your account and where to pay debts that have not been paid off. The letter will tell you whether you are currently in a settlement payment plan and what you need to do to keep that plan on track. If you are in a settlement payment plan, you must act quickly to avoid losing the terms of your settlement and reduced debt amount.
If you have debts that were not settled, you will need to consider other options to resolve those debts. You can negotiate directly with creditors to try to get a reduced payment plan on your debts. If you are thinking of paying another company for debt settlement services, you should first carefully review your options to avoid illegal upfront fees and other scams.
Requesting a refund
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. You may be eligible to receive compensation for the fees that Morgan Drexen illegally charged you. You don’t need to do anything to get that compensation—the Bureau will contact you if and when funds become available to compensate you.
Updated on July 29, 2015 as Morgan Drexen will be shutting down completely and their phone number will be disconnected.
Updated on March 18, 2016 to remove outdated information and the link to morgandrexen.com.