Elkhorn, Wisconsin residents seeking debt relief or a debt settlement company must heed the old saying, “If it sounds too good to be true, then it probably is.” Unfortunately, there are a lot of dishonest companies in this world and some of them hail from the State of Wisconsin. According to the Wisconsin State Court of Appeals, a Wisconsin debt settlement company must pay its customers back $4.2 million in debt settlement service fees.
The Wisconsin debt settlement company of Morgan Drexen, Inc. advised its customers to stop paying all creditors. Instead, Morgan Drexen took the money and placed it into an account which Morgan Drexen controlled. Once a client’s “account” accumulated enough funds necessary to buy down debt, Morgan Drexen would negotiate settlements with its clients’ creditors, pay said creditors, and then pay themselves a fee for their service. Morgan Drexen, Inc. operated under this practice for five years, during which time they received $8 million from their Wisconsin client. They paid themselves $4.2 million, over half of all fund received.
Morgan Drexen, Inc. was accused of operating without a license. They argued the case, but a hearing examiner ordered them to return the $4.2 million and pay an additional $1.89 million for breaking the law. The case went to the District II Court of Appeals. The Appeals Court ruled that the hearing examiner did not err in determining Morgan Drexen violated the law.
It actually sounds like pretty good plan, right? I slowly pay a company “x” amount of dollars until I have saved enough to settle all my debts. The company does this on my behalf and takes their fee. No fuss. Easy. That’s where the old saying comes into play. It sounded too good to be true. And, so it was. They were violating the law and operating without a license. In addition, clients were paying far more money than it took to settle the clients’ debts, as over half of the money Morgan Drexen took in went straight into their own pockets.
This is a good time to warn Elkhorn, Wisconsin residents who are seeking debt repair or debt settlement help to be cautious. Research a company before doing business. Ask peers and family members for recommendations. Check the Better Business Bureau ratings. Search for reviews online. Better yet, work with someone local who you know and trust. If you do your homework, you are less likely to fall victim to an Elkhorn debt settlement scam.
Contact Our Elkhorn Debt Repair Attorney
If you have questions about debt repair or debt settlement, contact the offices of Wynn at Law, LLC. Wynn at Law, LLC has offices in Lake Geneva, Salem, and Delavan, Wisconsin. You can reach our Elkhorn debt repair attorney by phone at 262-725-0175 or by email via our website’s contact page.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.