We are sending compensation to many people harmed by Morgan Drexen, a debt settlement company. Morgan Drexen violated a federal regulation that prohibits debt settlement companies from charging people upfront fees before settling any of their debts. Morgan Drexen was ordered by a court to pay almost $133 million to people who enrolled in their debt settlement services after the federal regulation went into effect.
Since the company is now in bankruptcy, they are unable to pay the full amount ordered by the court. As a result, we have set aside money from our Civil Penalty Fund to help compensate people covered by the court order.
If you were harmed by Morgan Drexen, you may receive a cover letter and check for some of the upfront fees you paid. You can expect this to arrive in the mail during August or September.
If you did not receive a check but you were a Morgan Drexen customer and think you are eligible to receive compensation, we have information to help you understand the process.
How do I know if I’m eligible for compensation?
Only people whose payments were reported in Morgan Drexen’s database are eligible for compensation. This includes people enrolled in the company’s debt settlement services between Oct. 27, 2010 and June 18, 2015. The law prohibiting the upfront fees that Morgan Drexen charged you was not in effect until Oct. 27, 2010.
If you signed up with Morgan Drexen before Oct. 27, 2010, then you are not eligible for compensation.
Filing a claim
If you believe that you are eligible and did not receive a check, you have the option to file a claim.
We have contracted with Epiq Systems as the third-party administrator to process claims and answer questions regarding this case.
You will need to provide the lead account number or file number associated with your Morgan Drexen account, and supporting documentation, such as a Morgan Drexen invoice or other statement, to complete your claim.
and email it to the third-party administrator at MorganDrexen_Info@cfpbconsumerprotection.org.
OR you can mail it to us at:
CFPB v. Morgan Drexen
Civil Penalty Fund Third-Party Administrator
PO Box 3518
Portland, OR 97208-3518
Claims sent by mail must be received by Dec. 4, 2017.
Where can I find my account or file number?
You can find your account or file number on a variety of possible documents that may have been sent to you by Morgan Drexen or law firms that did business with Morgan Drexen. It may have been written on your records as “Client File No.” or “File #”. You may be able to find this information on a number of different documents, including:
- Invoices and monthly statements. Review invoices or monthly statements sent to you by Morgan Drexen or any law firm that did business with Morgan Drexen. The file number may be listed on the top right-hand corner.
- Letters from your law firm. Review any correspondence or letters from the law firm that may have done business with Morgan Drexen, including termination letters or engagement letters. The file number may be at the top of the letter below your contact information.
- Client questionnaires. Review the first page of the client questionnaire sent to you by Morgan Drexen or any law firm that did business with Morgan Drexen. The file number may be on that page.
How much compensation will I receive?
If you are eligible, our third-party administrator, Epiq Systems, will use our records to determine the amount you are eligible for and send you a check.
If you do receive a check, it will only cover the amount of unlawful fees you were charged that have not already been returned to you. So the check will not include compensation for any amount that Morgan Drexen paid to your creditors.
Keep in mind that cashing the check you receive in the mail doesn’t stop you from making any further legal claims that may be available to you. We can’t give you legal guidance, so you may want to find an attorney for advice.
Beware of scams
If anyone claims that they can get you compensation, but asks for money, it could be a scam. The CFPB will never require you to pay money and does not ask for additional information before you can submit a claim or cash a check that we’ve issued.
Please contact us right away if this happens to you. If you have any other questions about this matter:
- Visit our
- Call us at (844) 616-6625, 9 a.m. and 9 p.m. ET, Monday through Friday.
- Email the third-party administrator at MorganDrexen_Info@cfpbconsumerprotection.org