Debt Settlement Company Faces Consumer Bureau Action for Deceptive Practices

Debt settlement company DMB Financial is facing a potential $5.4 million fine and other penalties as a result of action taken by the Consumer Financial Protection Bureau (CFPB).

Here’s more on the action taken to protect consumers:

“DMB Financial preyed on consumers who were struggling financially, charging millions of dollars in illegal upfront fees and hiding the true cost of its services,” said CFPB Acting Director Dave Uejio. “Charging upfront fees for debt settlement is a violation of federal law, and the CFPB will continue to act decisively when we see companies taking advantage of consumers in this way.”

DMB Financial is a Massachusetts-based debt-settlement company that operates in at least 24 states. DMB offers and provides services to settle or renegotiate unsecured debt on behalf of consumers.

In December 2020 the CFPB filed a lawsuit against DMB Financial in federal district court in Massachusetts alleging that the company had charged unlawful upfront frees before it performed its promised services, and before consumers began making payments under any debt settlement.

Deceiving Consumers About Fees and Disclosures

The CFPB alleges that DMB Financial violated the TSR and CFPA. DMB’s violations center around:

• Unlawful fees: DMB Financial allegedly charged fees before some consumers had made at least one payment to a…