The Consumer Financial Protection Bureau filed a lawsuit against Morgan Drexen and its president and CEO Walter Ledda for allegedly deceiving customers by charging upfront illegal fees this week.
The CFPB alleges Morgan Drexen falsely claimed that it does not charge customers upfront fees for debt-relief services. Furthermore, the CFPB claims the firm wrongfully gave consumers the impression that working with Morgan Drexen would allow them to become debt free within a matter of months.
“This company took advantage of people who were struggling,” said CFPB Director Richard Cordray.
He added, “The company charged consumers illegal fees and deceived them about the services provided. We will hold them accountable for these actions.”