Frequently asked questions

  1. What is this lawsuit about?

    The Consumer Financial Protection Bureau, also known as the CFPB, is a government agency responsible for enforcing laws that protect consumers. The CFPB sued Morgan Drexen and its President and CEO Walter Ledda in 2013, alleging that they had violated the Telemarketing Sales Rule and the Dodd-Frank Wall Street Reform and Consumer Protection Act by charging illegal upfront fees for debt relief services and misrepresenting their services to consumers. The court found that the company violated federal law, prohibited Morgan Drexen from collecting any further fees from its customers, and ordered it to pay $132,882,488 back to consumers and a $40 million civil penalty.

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  2. Why did I receive this check?

    You received this check because Morgan Drexen’s records showed that you paid fees to the company before the company settled, reduced, or otherwise altered the terms of at least one of your debts between October 27, 2010 and June 18, 2015. Federal law prohibited Morgan Drexen from charging you these upfront fees. Our refund check reflects the total amount of illegal upfront fees that Morgan Drexen charged you.

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  3. Are Spanish versions of the cover letter/ claim form available?

    Please turn the cover letter over to read it in Spanish. Spanish speakers are also available to help translate the claim form and answer questions by calling our help line toll free at 1-844-616-6625.

    Por favor, envíe la carta de presentación para leerla en español. Hablantes de habla hispana también están disponibles para ayudar a traducir el formulario de reclamación y contestar preguntas llamando a nuestra línea de ayuda gratis al 1-844-616-6625.

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  4. How do I find out more about this case? / Can I get more information about the allegations and complaints in this lawsuit?

    Additional information on the case is available on the CFPB's website. The link to the final court order can be found here.

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  5. What is this case about/ What laws were violated?

    The CFPB sued Morgan Drexen and Ledda in 2013, alleging that they had violated the Telemarketing Sales Rule and the Dodd-Frank Wall Street Reform and Consumer Protection Act by charging illegal upfront fees for debt relief services and misrepresenting their services to consumers. The Telemarketing Sales Rule prohibits deception in telemarketing and generally prohibits debt relief providers from charging a fee for any debt relief service until they have actually settled, reduced, or otherwise altered the terms of at least one of the consumer’s debts.

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  6. Who is the CFPB?

    The CFPB stands for the Consumer Financial Protection Bureau. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 established the CFPB. Congress established the CFPB to protect consumers by carrying out federal consumer financial laws. Among other things, the CFPB:

    • Writes rules, supervises companies, and enforces federal consumer financial protection laws;
    • Restricts unfair, deceptive, or abusive acts or practices;
    • Takes consumer complaints;
    • Promotes financial education;
    • Researches consumer behavior;
    • Monitors financial markets for new risks to consumers;
    • Enforces laws that outlaw discrimination and other unfair treatment in consumer finance; and
    • To learn more, visit https://www.consumerfinance.gov.

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  7. Who are you?

    We are Epiq. CFPB has contracted with us, Epiq, as the Third Party Administrator to answer questions regarding this case.

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  8. Is this a scam? How do I verify that this is legitimate?

    No, this is not a scam. If you wish, you can verify that we are contracted with CFPB by calling CFPB directly at 855-411-2372 or visiting the CFPB’s website.

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  9. If I receive a check with instructions to pay a fee or to provide additional personal information, what should I do?

    The Consumer Financial Protection Bureau, or CFPB, never requires consumers to pay money up front or provide additional information before consumers can cash refund checks that CFPB has issued.

    If anyone claims that they can get you a refund but asks you for money, it could be a scam. Please contact us right away if this happens to you or if you have other questions about this matter.

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  10. What is your address?/Where can I send information?

    You may contact us in writing at:

    CFPB v. Morgan Drexen
    Civil Penalty Fund Third-Party Administrator
    P.O. BOX 3518
    Portland, OR 97208-3518

    Please note that information you submit is treated in accordance with the Privacy Act. You can view the Privacy Act in FAQ 15.

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  11. My check is lost/damaged. Can you please send me a new one?

    Please send a signed letter requesting that we reissue your check. Please include your full name and current mailing address along with a signature to:

    CFPB v. Morgan Drexen
    Civil Penalty Fund Third-Party Administrator
    P.O. BOX 3518
    Portland, OR 97208-3518

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  12. The check is not made out in my correct name. What do I do?

    If you have changed your name, the name on the check is incorrect, or you are unable to deposit the check, we can reissue the check. To help us do this, please return the original check to us at CFPB v. Morgan Drexen, Civil Penalty Fund Third-Party Administrator, P.O. Box 3518, Portland, OR 97208-3518, along with a letter of explanation and copies of any documentation that support the name change. We can then reissue a check.

    Please note that information you submit is treated in accordance with the Privacy Act. You can view the Privacy Act in FAQ 15.

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  13. The person to whom the check is made out is deceased. What do I do?

    If the person whose name is on the check is deceased and you cannot cash the check, we can reissue the check to the person’s beneficiary. To do this, please mail the original check to us at CFPB v. Morgan Drexen, Civil Penalty Fund Third-Party Administrator, P.O. Box 3518, Portland, OR 97208-3518, along with a copy of the death certificate and documentation showing that you represent the estate. Also include a letter requesting that the check be mailed in the beneficiary’s name. We will then reissue a check.

    Please note that information you submit is treated in accordance with the Privacy Act. You can view the Privacy Act in FAQ 15.

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  14. This check is issued to two payees. How do we have this check split?

    In order to split the check between two payees, additional written documentation is needed. Please send a signed, written request to issue two checks with enclosed documentation. The documentation would need to show that the two payees should no longer be compensated together, such as a divorce decree. If the documentation is deemed sufficient and the unpaid check is returned to us, we can reissue separate checks to each of the payees. Please send your signed, written request and documentation to:

    CFPB v. Morgan Drexen
    Civil Penalty Fund Third-Party Administrator
    P.O. BOX 3518
    Portland, OR 97208-3518

    Please note that information you submit is treated in accordance with the Privacy Act. You can view the Privacy Act in FAQ 15.

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  15. What is the Privacy Act?

    The information requested is being collected to determine your eligibility for a Civil Penalty Fund or redress payment from the Consumer Financial Protection Bureau (CFPB) to compensate you for harm suffered from a violation of Federal consumer financial law that was the subject of a Bureau enforcement action.

    Identifying information collected may be used by and disclosed to employees, contractors, agents, and others authorized by the CFPB to receive this information to assist in related activities. It may also be disclosed:

    • to a court, magistrate, or administrative tribunal in the course of a proceeding;
    • for enforcement, statutory, and regulatory purposes;
    • to another federal or state agency or regulatory authority;
    • to a member of Congress; to the Department of Justice, a court, an adjudicative body or administrative tribunal, or a party in litigation; and
    • pursuant to the CFPB's published Privacy Act system of records notice, CFPB.025 – Civil Penalty Fund and Bureau-Administered Redress Program Records.

    The collection of this information is authorized by Pub. L. 111-203, Title X, Sections 1017(d) (Civil Penalty Fund) and/or 1055(a) (Redress), codified at 12 U.S.C. §§ 5497(d), 5565(a).

    You are not required to submit or provide any identifying information; however, not doing so may delay processing or be a basis for rejection of your claim.

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  16. How do I deposit my check that says “for deposit only” if I am unable to do so?

    If you are unable to deposit the check into your bank account, you may request that a replacement check be issued to you without the ‘For deposit only’ restriction.

    To request a replacement check, please return the original check, accompanied by a signed written request asking that a replacement check be issued and mailed to you. Please include an instruction that the replacement check be issued to you without the ‘For deposit only’ restriction. You must submit your request no later than the stale date printed on your check. Please note that information you submit is treated in accordance with the Privacy Act. You can view the Privacy Act in FAQ 15.

    Please return the original check to:

    CFPB v. Morgan Drexen
    Civil Penalty Fund Third-Party Administrator
    P.O. Box 3518
    Portland, OR 97208-3518

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  17. How do I receive a refund?

    If you are eligible for a refund as a result of the CFPB's lawsuit against Morgan Drexen, Inc., your name should be in our records and you should have received a check.

    Eligible victims in this case enrolled in the company’s debt relief services between October 27, 2010 and June 18, 2015, and were charged illegal fees. If you believe you are an eligible consumer and did not receive a check, you have the option to file a claim form. You will need to provide the lead account number associated with your Morgan Drexen account, as well as proof of the file number, such as a Morgan Drexen invoice or other statement, to complete your submission.

    You can download the claim form here, or call toll-free 1-844-616-6625 to have a claim form mailed to your current address.

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  18. I didn’t sue anyone. Why are you sending me a check?

    The Consumer Financial Protection Bureau (CFPB) sued Morgan Drexen and its owner in 2013 for charging illegal upfront fees for debt relief services and not describing their services accurately on behalf of all consumers who were victims of Morgan Drexen. If you received a check, according to the company’s records, you enrolled in the company’s debt relief services between October 27, 2010 and June 18, 2015, and were charged illegal upfront fees for debt relief services. The Telemarketing Sales Rule prohibits deception in telemarketing and generally prohibits debt relief providers from charging a fee for any debt relief service until they have actually settled, reduced, or otherwise altered the terms of at least one of the consumer’s debts. The check you received represents a refund of those charges.

    You can find more about the case, including the final court order, at https://www.consumerfinance.gov/about-us/payments-harmed-consumers/payments-by-case and click on the link that says, “Morgan Drexen, Inc.”

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  19. Will I be able to get more money from this case beyond this check? / Can I dispute my award?

    The check you received may not cover the entire amount of harm you incurred. The amount was calculated based on the records available to the CFPB. Receiving a refund from the CFPB does not prevent you from pursuing other legal claims, if any, against Morgan Drexen, Inc. While we cannot give you individual legal advice, you can speak with an attorney who can provide legal advice specific to your situation. If you believe you are an eligible consumer and did not receive a check, OR if you had more than one file number or account with Morgan Drexen, you have the option to file a claim. You will need to provide the lead account number or file number associated with your Morgan Drexen account, as well as a piece of supporting documentation, such as a Morgan Drexen invoice or other statement, to complete your submission.

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  20. Do I have to pay income tax on this check? How does this check affect my taxes?

    We do not believe that, under ordinary circumstances, these funds represent “income” to you for tax purposes; however, we cannot provide personalized tax advice. Please consult a tax advisor for any personal tax questions.

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  21. What documentation should I send as part of my claim?

    Please send to the CFPB a copy of your proof of payment for each transaction you are claiming. Proof of payment may include canceled check, credit card bill, banking statements, or any invoice marked by the Defendant as paid. DO NOT SEND ORIGINALS. Documents will not be returned to you.

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  22. If I am eligible, how much money will I receive? Do I need to provide any other information?

    If you are eligible, the CFPB will use its records and the accompanying documentation you provided in your claim to determine how much money you are entitled to receive and will send you a check.

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  23. How do I verify that this claims process is legitimate?

    The CFPB never requires consumers to pay money or provide any banking information, credit card information, or other payment information before consumers can cash refund checks that CFPB has issued. If anyone claims that they can get you a refund but asks you for money, it could be a scam. You can verify with the CFPB that this a legitimate claims process by calling CFPB directly at 855-411-2372 or visiting their website: https://www.consumerfinance.gov/about-us/payments-harmed-consumers/payments-by-case and click on the link that says, “Morgan Drexen, Inc.”

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