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Volume 25 - Number 23

November 10, 2014

CFPB Asks Court to Permanently Bar Morgan Drexen from Debt Biz

Last month, the long-running dispute between the CFPB and Morgan Drexen, a debt settlement firm, took another turn – this time with the bureau filing a motion for summary judgment in which it seeks an injunction permanently barring the firm and its owner and CEO, Walter Ledda, from providing debt relief services in the future. The bureau also is pushing for $90.7 million from the defendants in restitution, as well as a civil money penalty in an unspecified amount. The CFPB said it brought this action to stop a nationwide debt settlement “scheme that preys on financially distressed consumers who are in debt.” Defendants Morgan Drexen and Ledda and the attorneys with whom they are affiliated promise consumers that they will ...

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With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

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