Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.
CFPB proposes settlement with DMB Financial
The CFPB has requested a federal district court to enter a final judgment and order that, if entered by the court, would require DMB Financial, LLC to pay consumers at least $5.4 million for charging unlawful fees and failing to provide required disclosures to its customers, and a civil penalty. The CFPB alleges that DMB’s actions violated the Federal Trade Commission's Telemarketing Sales Rule and the Consumer Financial Protection Act.
DMB Financial is a Beverly, 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.
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 creditor under a settlement agreement and charged some consumers fees even though it did not negotiate a settlement. The company also allegedly collected fees that were calculated on the consumer’s debt amount after their time of enrollment in one of DMB’s debt-settlement programs.
- Improper disclosures: DMB Financial allegedly failed to disclose the amount that a consumer must save before making a settlement offer and the time by which it would make a settlement offer. The company also allegedly deceived consumers about settlement fees, including by charging settlement fees greater than what was disclosed in the enrollment agreement.
The proposed judgment and order, if entered by the court, would require DMB Financial to:
- Refund harmed consumers: The order, if entered by the court, would impose a judgment of $7.7 million against DMB Financial, LLC, which would be suspended upon its paying consumers $5.4 million.
- Stop deceptive practices: DMB Financial would be prohibited from engaging in the unlawful and deceptive practices alleged by the CFPB.
- Pay a civil penalty: The order would also impose a penalty of $1 to be paid to the Bureau and deposited into the CFPB’s Civil Penalty Fund. By requiring the DMB Financial to pay a penalty of $1, the order may make consumers eligible for additional relief from the CFPB Civil Penalty Fund in the future, although that determination has not yet been made.