- The Consumer Financial Protection Bureau (“CFPB”) sued debt-settlement company DMB Financial LLC for allegedly engaging in abusive and deceptive practices that harmed the customers of its debt-settlement programs in violation of the Telemarketing Sales Rule and the Dodd–Frank Wall Street Reform and Consumer Protection Act.
- The complaint alleges that, among other things, DMB Financial charged fees before it performed its debt-settlement services, collected post-settlement fees based on increased debt amounts rather than the amount of the debt at the time of enrollment in its program, and misrepresented to consumers that it would not charge a fee prior to debt settlement. The complaint further alleges that DMB Financial failed to disclose to consumers the details of when it would make a settlement offer or how much of their outstanding debt consumers had to accumulate in a DMB Financial-controlled bank account before it would make a settlement offer.
- The complaint seeks injunctive relief, redress, disgorgement, civil money penalties, and attorneys’ costs.