Morgan Drexen, a debt-relief provider, is being sued by the Consumer Financial Protection Bureau for false marketing a month after the same company filed suit against the agency.
The CFPB's suit accuses Morgan Drexen and its owner, Walter Ledda, of illegally charging upfront fees and falsely marketing to consumers that they would be debt free in months if they signed up.
"This company took advantage of people who were struggling," said CFPB Director Richard Cordray in the press release. "The company charged consumers illegal fees and deceived them about the services provided. We will hold them accountable for these actions."
The suit, filed in the U.S. District Court Central District of California, alleges that the company violated the Telemarketing Sales Rule and the Dodd-Frank Act by charging upfront fees before it settled or amended a consumer's debt.
For the full piece see "CFPB Sues Debt-Relief Company that First Sued Agency" (may require subscription).