December 1, 2020

CFPB seeks disgorgement and injunction for allegedly abusive and deceptive telemarketing and debt settlement practices

On December 1, 2020, the Consumer Financial Protection Bureau filed a complaint alleging that DMB Financial, LLC, a Massachusetts-based debt-settlement and debt-relief business, violated the Telemarketing Sales Rule and the Consumer Financial Protection Act in connection with the renegotiation and settlement of unsecured consumer debts.

The CFPB alleges that DMB engaged in abusive and deceptive acts or practices in violation of the TSR and CFPA by (i) requesting and receiving fees from consumers before providing services and before those consumers started payments under debt settlements, (ii) collecting fees based on post-enrollment increased debt amounts rather than debt at the time of enrollment, (iii) failing to disclose to consumers the timing of the company’s debt settlement offers to creditors and the percentage of outstanding debts needed from the consumer prior to settlement, and (iv) misrepresenting its fee calculation and collection practices to consumers.

In addition to seeking civil money penalties and the disgorgement of ill-gotten gains, the CFPB seeks to enjoin DMB from future violations of the Telemarketing Act, the TSR, the CFPA, and any other provision of “Federal consumer financial law” as defined by 12 U.S.C. § 5481(14).

CFPB press release | Complaint