DMB Financial, LLC
On December 1, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit in the United States District Court for the District of Massachusetts against DMB Financial, LLC (DMB). DMB, which has its principal place of business in Beverly, Massachusetts, offers to renegotiate, settle, or otherwise alter the terms of unsecured debts owed by consumers to creditors or debt collectors. As alleged in the Bureau’s complaint, since its establishment in 2003, DMB claims to have successfully negotiated and settled over $1 billion of consumer debt for over 30,000 consumers who have enrolled in its debt-settlement or debt-relief programs. The Bureau alleges that in connection with its debt-settlement and debt-relief services, DMB engaged in abusive and deceptive acts or practices in violation of the Telemarketing Sales Rule (TSR) and deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA). The Bureau also alleges that DMB’s alleged TSR violations also constitute violations of the CFPA. The Bureau’s complaint seeks an injunction, as well as redress to consumers, disgorgement of ill-gotten gains, and the imposition of civil money penalties.