CFPB files suit against Morgan Drexen for charging illegal fees

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has announced that it filed a lawsuit in federal district court against a Nevada corporation, Morgan Drexen, Inc., and its president and chief executive officer, Walter Ledda, for charging illegal upfront fees and deceiving consumers. The complaint alleges that the company falsely claims that it does not charge consumers upfront fees for debt-relief services and falsely represents to consumers that they will become debt free in months if they work with Morgan Drexen. The CFPB alleges that the defendants have violated the Telemarketing Sales Rule and the Dodd-Frank Wall Street Reform and Consumer Protection Act.