800-868-1458

Google search results point to Morgan Drexen - a Debt Settlement company.

The Owner of this company was in a law suit...
Walter Ledda

We are still researching this company...since now we are over 100 days late on every credit cards that they have control of.

For Release: March 30, 2005

Debt Services Operations Settle FTC Charges

Three operations that scammed consumers out of more than one hundred million dollars by falsely promising easy debt relief have settled Federal Trade Commission charges that their business practices were illegal. According to the FTC, in some cases, consumers’ debt, interest rates, and penalties increased and some consumers were forced into bankruptcy. The companies and their principals will pay more than $6 million combined in consumer redress and are permanently barred from making deceptive claims about debt-related services. Two of the operations and their principals also are barred from engaging in abusive telemarketing practices, following FTC charges that they repeatedly called consumers on the National Do Not Call Registry.

“Consumers who want to get out of debt are looking for services to help relieve their financial troubles, not make them worse,” said Lydia Parnes, Acting Director of the FTC’s Bureau of Consumer Protection. “The FTC is committed to ridding the debt services industry of companies who shatter consumer confidence and hurt legitimate businesses’ ability to help consumers.”

National Consumer Council

In May 2004, the FTC filed a complaint against a group of companies and individual defendants, fronted by “National Consumer Council” (NCC), a purported nonprofit organization, that solicited customers through an aggressive telemarketing and direct mail advertising campaign that falsely promised free debt counseling. In fact, NCC’s role in the scheme was simply to generate leads for the other defendants, who then charged consumers thousands of dollars in fees to enroll in their debt negotiation programs. The defendants deceptively claimed these programs were an effective way to stop creditors’ collection efforts and eliminate their debts. The FTC alleged that the defendants failed to disclose important information to consumers before they enrolled, including the fact that very few people were able to reduce their debts through the debt negotiation programs; consumers would suffer late fees, penalties, and other charges; and that participation in the program might hurt their credit rating. A court-appointed receiver determined that less than two percent of the consumers who enrolled in the defendants’ debt negotiation programs – 638 out of 44,844 consumers – actually completed them.

The FTC’s complaint also alleged that the defendants violated the Telemarketing Sales Rule (TSR), including the National Do Not Call Registry provisions, by calling consumers who had placed their phone numbers on the Registry and claiming that NCC was a nonprofit organization exempt from the Do Not Call requirements. The complaint further alleged that some of the defendants violated the Gramm-Leach-Bliley (GLB) Act by failing to inform consumers how their personal financial information would be used.

At the FTC’s request, a federal district court appointed a receiver over defendants National Consumer Council, an Arizona corporation; National Consumer Council, a California corporation; National Consumer Council, a Nevada corporation, London Financial Group; National Consumer Debt Council, LLC; Solidium, LLC; J.P. Landis, LLC; Financial Rescue Services, Inc. (FRS); Signature Equities, LLC; M&L Springfield Trust; PC Hailey Trust; Via Lido Trust; and United Consumers Law Group. The receiver has returned approximately $24 million in consumer funds held in defendants’ trust accounts. The receiver also is winding down the corporations’ business operations.

The FTC entered into separate settlements with the receivership defendants and each of the individual defendants. The stipulated settlement orders bar the defendants from making false claims for debt negotiation services or any other product or service. The orders require that, prior to enrolling any consumer in a debt negotiation plan, the defendants must clearly disclose that: (1) late fees, penalties, and interest will continue to accrue on the consumer’s debt until the consumer’s creditors accept and receive a settlement; (2) a consumer’s creditors may still sue to collect on the debts and garnish the consumer’s wages; (3) interest rates applicable to the consumer’s debt may increase; (4) any money a consumer saves in negotiating a settlement with a creditor must be treated as income for tax purposes; and (5) a debt settled for less than the full amount owed may result in a negative notation on the consumer’s credit report. The orders also prohibit the defendants from engaging in abusive telemarketing practices, including violations of the National Do Not Call Registry, and require them to comply with the GLB Act.

In addition, settlements with the corporate receivership defendants require them to pay $1 million in consumer redress. The stipulated orders against defendants Walter Haines, Paul Kardos, and Walter Ledda require them to pay $605,000, $1,860,000, and $1,356,000, respectively. The orders against each of these defendants include a suspended judgment of $84.3 million, the amount of fees these defendants received from consumers. If any of these defendants fail to make their payments within the time allotted in the order, or if it is found that they misrepresented their financial status, they will be held liable for the entire $84.3 million. The stipulated orders against defendants Mary Beth Harper and Martha Levitsky include a suspended monetary judgment of $17.8 million for the fees their company, defendant FRS, received from consumers; they will be liable for the entire $17.8 million if it is found that they misrepresented their financial condition to the FTC. The stipulated order against defendant Harvey Warren includes a suspended monetary judgment of $84.3 million for the fees received from consumers; Warren will be liable for the entire $84.3 million if it is found that he misrepresented his financial condition to the FTC.

Debt Management Foundation Services

In July 2004, the FTC charged Debt Management Foundation Services (DMFS), four related corporations, and the three individuals that control them with falsely representing that DMFS and its predecessors provided debt management services and that DMFS is a nonprofit corporation. The FTC alleged that DMFS and its affiliates falsely represented that they could reduce consumers’ debts by 50 percent, reduce or eliminate interest on the debts, and provide assistance before consumers’ next credit card billing cycle. The FTC charged that the defendants deceived consumers into paying up-front fees as high as $1,000 and monthly fees of $20 to $49. The FTC also alleged that the defendants violated the TSR by calling consumers whose phone numbers were registered on the National Do Not Call Registry.

The stipulated final order provides that the court-appointed receiver who took over DMFS and the four related corporations last summer will liquidate the companies. The order also provides that the individuals who operated DMFS must surrender their interest in these companies, and that two of the individuals must make additional payments. Defendant Dale Buird, Sr., must pay $200,000, and defendant Dale Buird, Jr., must transfer assets in several accounts, totaling an estimated $58,000, to the court-appointed receiver.

The order permanently prohibits the defendants from making false claims about debt management services, including representing that they can reduce consumers’ debt or interest rates, that they provide services before consumers’ next billing cycle, or that they are a nonprofit organization; billing customers without fully disclosing material terms; and failing to provide required privacy notices under the GLB Act. The order also permanently prohibits the defendants from charging advance fees and failing to provide the written contracts and notices of the right to cancel required by the Credit Repair Organizations Act. In addition, the order bars the defendants from selling consumer data and from calling consumers in violation of the National Do Not Call Registry. If the individual defendants ever own or manage a business that uses telemarketing, the order requires that they monitor their telemarketers to ensure that they are not making illegal calls.

The stipulated final order includes a suspended monetary judgment of $11,035,065 in funds that were taken from consumers. If the defendants fail to make the payments required by the order, or if it is found that they misrepresented their finances, the court may enter an order making the entire balance immediately due.

The complaint and stipulated final order name DMFS, One Star Marketing, Inc., Debt Specialist of America, Inc. (a/k/a Debt Management Foundation, Inc.), Ameridebt Group, Inc., Credit Counseling Specialists of America, Inc., Dale Buird, Jr., Dale Buird, Sr., and Shawn Buird as defendants.

Better Budget Financial Services

In November 2004, the FTC charged BBFS and its principals with falsely claiming they could reduce consumer debt by 50 to 70 percent and shorten the time period necessary to pay off the debt, in exchange for a monthly fee of $29.95 to $39.95 plus 25 percent of any money a consumer saved in a settlement with a creditor. The stipulated final order requires Better Budget Financial Services, Inc., John Colon, Jr., and Julie Fabrizio-Colon to turn over assets totaling approximately $1.3 million to a court-appointed receiver. They are barred from misrepresenting that they can reduce consumers’ debts; settle with consumers’ creditors once consumers accumulate a certain percentage of the total debt; and stop creditors from attempting to collect on overdue payments. Each of the individual defendants also is barred from marketing debt
management services without first obtaining a $2 million performance bond, and from selling customer data. If it is found that the defendants misrepresented their financial situation, they will be held liable for $11,978,249, the estimated amount they took from consumers.

According to the FTC’s complaint, the defendants advised consumers to stop paying their creditors and save their money in an ordinary bank account from which the defendants withdrew their monthly fee. The defendants promised to settle consumers’ debts with their creditors once the consumers accrued a certain amount, such as one-half the debt, in their BBFS account. The defendants further claimed that they would contact consumers’ creditors and get them to stop collection attempts. The FTC charged that few consumers had all of their debts settled by the defendants. In fact, consumers’ debts increased due to the imposition of late fees and penalties onto their accounts. Many consumers were sued by their creditors and many were forced to file for bankruptcy. Despite the defendants’ promises, collection efforts continued for consumers who followed BBFS’s instructions and stopped communicating with their creditors.

All the stipulated final orders announced today also contain standard recordkeeping and reporting requirements to assist the FTC in monitoring the defendants’ compliance.

The FTC also recently announced a settlement with AmeriDebt, Inc., a Maryland-based credit counseling firm that collected nearly $200 million in hidden fees from consumers across the country. AmeriDebt will shut down its operation and transfer all existing accounts to a reputable third party. For more information on the AmeriDebt case, see the press release dated March 21, 2005.

The Commission vote to authorize staff to file the settlement agreements was 5-0. All of the settlement agreements for NCC were filed in the U.S. District Court for the Central District of California on March 29, 2005. The order for DMFS was filed in the U.S. District Court for the Middle District of Florida, Tampa Division, on March 29, 2005. The order for BBFS was filed in the U.S. District Court for the District of Massachusetts on March 10, 2005.

Consumer Education

The FTC offers numerous consumer education materials to help consumers in debt learn about their options and help them decide which option is right for them, including information on developing a budget, dealing with creditors and debt collectors, and choosing the right debt counselor or debt management plan (DMP). When choosing a credit counselor or DMP, the FTC recommends that consumers:

      Look for an organization that offers a range of services, including budget counseling, and savings and debt management classes. Avoid organizations that push a DMP as your only option before they spend a significant amount of time analyzing your financial situation.

      Get a written agreement and read it carefully. Make sure it includes a price quote, the services to be performed, how long it will take for you to complete the plan, and the organization’s business name and address.

      Beware of high fees or “voluntary contributions” that can cause you to fall deeper into debt.

      Make sure your creditors will work with the credit counseling organization you choose.

      Confirm that your creditors have accepted the plan before making payments to the credit counseling organization.

To make a DMP effective, the FTC recommends that consumers:

      Pay your bills until your creditors approve the plan.

      Call your creditors to make sure your credit counseling organization is paying them on time.

      Read your monthly statements when they arrive. Report errors to your creditors immediately.

The FTC cautions consumers to steer clear of any “debt negotiation” organizations that:

      Guarantee they will remove your unsecured debt;

      Insist you pay high monthly service fees;

      Want you to pay them every month, not your creditors; or

      Say they can get accurate negative information taken off your credit report.



Note: Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.

Copies of the orders are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Media Contact:

Jen Schwartzman
Office of Public Affairs
202-326-2674

Staff Contact:

National Consumer Council:
Jennifer Larabee or Faye Chen Barnouw
FTC Western Region, Los Angeles
310-824-4343

Debt Management Foundation Services:
Daniel Salsburg
Bureau of Consumer Protection
202-326-3402

Better Budget Financial Services:
Barbara Anthony or Carole A. Paynter
FTC Northeast Region
212-607-2829

 

NCC:
(FTC File No. 032-3185) (Civ. No. SACV04-0474CJC(JWJX))

DMFS:
(FTC File No. 042-3029) (Civ. No. 8:04-cv-01674-EAK-MSS)

BBFS:
(FTC File No. 041-2326) (Civ. No. 04-12326 (WGY))

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Related Documents:

Federal Trade Commission, Plaintiff, v. National Consumer Council, Inc., et al., Defendants. (United States District Court,
Central District of California, Southern Division) FTC File No. 032-3185 Civ. No. SACV04-0474CJC(JWJX)



Federal Trade Commission v. Debt Management Foundation Services, Inc.; One Star Marketing. Inc.; Debt Specialist of America; Inc.; Ameridebt Group, Inc.; Credit Counseling Specialists of America, Inc.; Dale Buird, Jr.; Dale Buird, Sr.; and Shawn Buird (United States District Court, Middle District of Florida, Tampa Division), FTC File No. 042-3029, Case No.: 8:04-CIV-1674-T-17-MSS



Federal Trade Commission Plaintiff, v.Better Budget Financial Services, Inc., John Colon, Jr., and Julie Fabrizio-Colon, Defendants. (United States District Court, District of Massachusetts), FTC File No. 041-2326 Civ. No. 04-12326 (WGY)



Consumer Information:

                    For People on Debt Management Plans: A Must-Do List

                    Fiscal Fitness: Choosing a Credit Counselor

                    Knee Deep in Debt

                    Building a Better Credit Report



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this number is linked to two others that call up- the first is 408-651-8160 - "chris young" asking you to return his call for help with credit debt- the number he leaves is 1800-709-8793 when you call this number it goes straight to music - then an "operator" answers asks if you have credit debt and for your name- they wont tell you the name of the company- if you do they hang up- which is what I did after the initial call- the warning bells go off in your head but your not sure- anyway they connect you with a "supervisor" that asks for your name about how much debt you have- then says a lawyer will call you back in 20 min- that "lawyer" Ron Deacon- called me back from this number 1-800-868-1458- I by then had researched the number and told him i was no longer interested in speaking to him and that this number had been reported as a scam he said its not a scam and that hes a lawyer in a credit dept- I said well I have alawyer too if youd like to speak to her- and i hung up.

even though my prior call with Ron Deacon- I said I was not interested and hung up on him - I recv'd a packet in the mail with a dvd - the letter h ead is morgan drexen integrated legal system not allied services as stated from the call. www.morgandrexen.com is the website on the letter - it is signed by Sr Dept Consultant Ron Deacon- no where does it say what he had stated - that he is a lawyer.it also says that we discussed my debt situation  that the program is designed to  negotiate mutually agreeable settlements between you and your creditors- and that I have been qualified for enrollment- as you can see above as soon as he called I said I had no interest in going forward or speaking with him- having researched and my feelings that the company was indeed a scam. this company is still calling me. I recognize the number now and do not answer it.

They keep calling

I received at least one call from this company daily for 6+ months.  There is never anyone on the line when answered.  I have reported to any website that I can, I am on the do not call lists. If anyone knows how to block this number please share the info.  My provider does not block calls.

Leaving messages, as if I applied for a Loan...mqaking me think that a someone got a hold of my personal information, and a loan was ready as soon as I confirmed the paperwork.
This company ( or whatever you may call it )- is committing fraudulent calls, and leave messages every day- with some phony guy ( Morgan )-this message is an automated message. Almost like a voice mail.
They should be taken down, and put out of business.

Lady calls about ddebt consolidation and sends this package from some place called Morgan Drexten. Ever since she has called here every day and night, I asked her to stop calling as I did not wish to speak to her nor their company. My phone number is on the national registry for do not call. If these people call don't give them any information don't even talk to them because they will harass you.

I KEEP GETTING THIS PHONE CALL BUT NO ONE SEEMS TO ANSWER I WANT THEM TO STOP CALLING MY HOUSE

This no# 1-800-8681458, called my sister Jody, who does have a problem with credit card debt.  He said it was a non-profit govt. agency. they told her they could pay off all of her cc depts and for small pymnt, they would have them payed in 3 yrs. Also, forgive all the interest. She called me to have me ck on it. She is a widow not in good health.

Ask for someone named Jeffery. I told them they had wrong number and the lady was telling me who she works for and I told her I dont care because she had the wrong number and I hung up on her.

They don't seem to quit and no one is on the other end.i'm sick and tired of gettin gthis call and even worse they call when i put my children in bed and wake them up every night

They called wanting to help me get out of debt with credit cards. They got my personal information. Than they ask me when I was going to have any money in my account? I thought that wasn't right. So I entered their phone number on the internet. All the information on them came up on having people complain about them.

was receiving calls from a couple various numbers for those people when I found a website to call Cezar at this number...so I left a message for him to call. I forgot to write down the numbers..so I didn't answer and was searching for the call number to talk to him.. while searching for the number he called me back 26 times in a row!! when I finally answered he said "some manners you have?!" and I was explaining that I was trying to get the phone number then he hung up on me!! REPORT THEM ALL!

I keep getting this automated call daily from this no

i have been receiving 1 or more calls a day from this company.. they usally leave a voice mail, a womans voice.. about wanting help settle my secured and unsecured debit.  tonight i notice on my caller ID i had a call from the US Government 1-800-868-1458 - wow... guess the name of the company on the answering service requesting i either dial an extension or hold for the next available .... you guessed it... MORGAN DREXEN.

Kurt from Morgan Drexen has been leaving me voice mails for more than two years!

I'm kinda messing around with him... I suffered through his spiel about paying off my debt, and courteously answered his questions (giving him false information of course)... He thinks he's got me "on the hook," sending me stuff in the mail.

I figure it costs him time and money to call me every day, and send me stuff frequently...so he'll have less time and money to spend on true victims.

Got this within 5 hours of getting a landline phone put in. Been calling for the past 2-3 weeks since then. Only gotten a message saying they were with Morgan Drexen and help with insecure debt, and to call back at a number. Some days I get 4-6 calls from them within 3 hours, sometimes listed as unknown caller. Will see if I can get ahold of an actual person so I can see if I can ge them to stop calling.

Phone calls from this number are annoying and disruptive.

I received numerous calls from this number, i want them to stop