COSTA MESA, Calif., Aug. 20, 2013 (GLOBE NEWSWIRE) -- Morgan Drexen issued a response to a lawsuit filed in California by the Consumer Financial Protection Bureau Tuesday, a week before the agency is required to answer a Washington, DC court's scheduling order to prove its constitutionality. Morgan Drexen joined Connecticut attorney Kimberly Pisinski in a lawsuit challenging the constitutionality of the agency in its attempt to data mine the communications of bankruptcy clients of Ms. Pisinksi and other attorneys Morgan Drexen supports.
"There are two glaring misrepresentations in the CFPB press release – one, that Morgan Drexen is a support services company NOT a debt-settlement company; and two, that CFPB's constitutionality as an agency is in question now – because of a lawsuit Morgan Drexen filed last month," said Morgan Drexen CEO Walter Ledda.
"Instead of proceeding in an orderly manner and in accordance with the schedule ordered by the federal court in Washington, DC, the CFPB has chosen to engage in procedural gamesmanship by opening a new front to the lawsuit 3000 miles away in Los Angeles," said Randall K. Miller, Venable partner and counsel for Morgan Drexen in a lawsuit filed in federal district court in Washington, D.C. That lawsuit against the CFPB was filed on July 22nd.
Miller points out that Morgan Drexen does not charge any fees to consumers. The attorneys who hire Morgan Drexen charge fees for their work, and is not out of line for their industry. The attorneys who provide debt relief -- even though they're not obligated to -- do so in compliance with the Telemarking Sales Rule and those attorneys who provide bankruptcy services do so in compliance with the US Bankruptcy Code, Miller said.
The propriety of Morgan Drexen support services model has been evaluated and confirmed by at least 16 jurisdictions across the country, including state bars and district courts.
"It is interesting to point out that the CFPB didn't mention attorneys in their press release, even though that's who Morgan Drexen works for," said Ledda.
"We work at the direction of the attorneys and pursuant to the Rules of Professional Conduct in the attorneys' respective states," he said.
The company sued the CFPB for its attempts to data mine personal, protected consumer information provided solely to their attorneys that is not of the public record – including attorney communications, the nature of the client's engagement with their attorney, attorney notes and other, non-public information.
Morgan Drexen has launched a website consolidating news coverage, legal documents and court filings: http://morgandrexenvscfpb.com
About Morgan Drexen
Morgan Drexen (www.morgandrexen.com) provides integrated software systems and administrative support services to businesses and industries nationwide. Morgan Drexen's proprietary MDIS software improves workflow through the use of automated document management. In addition to computer technology, Morgan Drexen provides businesses with marketing, marketing support, call centers, outsourced litigation support, databases, work-product retrieval systems and cloud-computing platforms facilitated by the company's outsourced support staff.