These clowns robo-dial the phone numbers in my employer's offices multiple times per day. Even when we all instantly hang-up on these calls their robot doesn't catch a clue, and the calls keep on coming every day.
They want to know if we want help in reducing our debt. We as a company have no debt. I asked to be taken off there call list and they said they would, will see.
Morgan Drexen - Allied Services Morgan Drexen Las Vegas Aka Allied Services Miami FL Debt Consulting Scam false representation as Law Firm Las Vegas Nevada
Let me share my incounter with Morgan Drexen. After receiving endless daily automated pre-recorded phone calls from Airin Linguard (866-250-3609) advising me she had my 'file' and wanted to follow up on a previous conversation regarding debt relief and credit card consolidation
with a 'pre-approved' $1,000 available. I had never ever talked with any one about these matters at any time.
Making it short, turns out the phone # led to a 'boiler room' call center who had no idea who Airin Linguard was, but promptly screened me as to my credit card debt. I was then advised a Franklin Lujan with Morgan Drexen would call me in 10 min. to provide the information I was seeking. More than an hour later Jenifer Rhomberg identifying her self as a 'paralegal' with Morgan Drexen called. As a side note, I called the Orange County Paralegal Association in the county Anaheim is located to discover she is not a member and that anyone can call them selves a paralegal regardles of training or employment.
This is how it went. After determining I was in debt approximately $7,000 on two credit cards with interest rates in excess of 20% and I am laied off making only minimum payments she offered a soulution to substantionaly reduce my outstanding debt and payment liability by at least half.
This sounded good to me. So, the next day Federal Express shows up with a fromal contract from the Law office of John Consadene in Media, PA. advising an 'Engagement' fee of $918.75 to be collected at the rate of $161. per month held in escrow before settlement payments to my creditors would commence.
OK, it gets better. He wanted attached to a signed contract my voided bank account check with both routing and account #'s for 'Automated Check Handling' obligating me to immediate payments on a contract calculated to reduce my debt by $1,204 over 36 months. Bear in mind, this contract was absent the names, acct. #'s or amounts owed to my two credit card companies let alone specific individual settlement figures or any thing else. All I had to do was authorize immediate $161. a month installments.
Examining this contract in detail I would be agreeing to clause 7, 'Fees, Costs, and Expenses'.
A. Engagement Fee: $918.75 (see above)
B. $10.00 per check handeling fee cut to each debtor monthly.
C. $15.00 fee for any ACH check cancelled by my bank.
D. $45.00 monthly administrative fee.
E. This is the killer. 25% fee of the difference between current amount
owed to creditors and negotiated settlement In my case calculated
to be $7,000 less 'anticipated' 1/2 or $3,500 multaplied by .25 equiling
$875.00.
I will spare you doing the math, but here are the net results. Take the paramaters above and work the numbers your self for $7,000.
Side note, item A: This fee lacked explicit explination. A debtor will, in my case, make almost 6 installments befor creditor payments begin. 36 months will transpire when my contract terminates, but creditor are not yet paid in full. What happins then? I live in a Wyoming jurisdiction with a contract governed by the laws of California from a lawyer in Pennsylvania. Oh deer!
B. $ 720. two checks per month for 36 months
C. 0. won't happin
D. 1,620. 45x36=1,620
E. 875. 7,000 (50%x7,000=3,500x25%) = 875
Total $3,215. this would appear per clause 7 to be total fees for 7,000.
3,500. settlement payments to creditors
Total $6,715.
My best numbers indicate creditors would receive $3,500. Morgan Drexen would collect $3,215. My debt would be reduced $285 over 3 years. Not $1,204.
However: Take $161 a month for 36 months and you get $5,796. Reduce this from 7,000 and you do get $1,204 net savings as stated in the contract, but in major variance with the stated 'Fee Schedule' in clause 7 of the contract.
What we have now are ultimate discrepencys leading to only two conclusions. The first being the Lawyers option to modify and ammend the contract as provided within clause 20. Doing so allows Morgan Drexen to modify in conformity of the 'Fee Schedule' and reduce savings from $1,204 to $285. The other inexcapable conclusion is that creditors will not receive what was setteled for and me the debtor will remain liable.
What Morgan Drexen actually is doing is sucking up a just debt owed to good faith credit extenders from debtors in a economic jamb. Only Morgan Drexen benefits from the plight of a good faith debtor. The creditor looses at least half. Morgan Drexen profits all most the remaining half and the poor debtor reduces their long term debt very little.
This contract is full of all kind of holes and completely uninforceable. But, who wants to get involved in what could be an extended legal battle requiring the debtor to retain their own expensive lawyer. Suffer the hastle with your bank trying to stop authorized withdrawls and then no doubt being attacked by collectors from Morgan Drexen. This is but the 'tip of an iceberg wrought with disaster'.
Should anyone doubt this experience with Morgan Drexen I will be happy to fax or mail copies of their contract.