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Home > Reader Questions > Is DMB Financial, Legitimate or a Scam? – Kim

Is DMB Financial, Legitimate or a Scam? – Kim

I have approxmitely 31,000 in credit card debt. I have signed on to repay my debt within 48 months at $520.00 per months. Does this work. I have had a lot of correspondence with them. But dont know if it is a scam or legite. I am still within my 30 days but I am a bit nervous about the situation. Please help me. I WANT TO KNOW IF THEY ARE FOR REAL BEFORE PROCEEDING ANY FURTHER AND POSSIBLY DESTROYING MR CREDIT RATING.

Is DMB FINANCIAL LEGITIMATE OR A SCAM? I need help in consolidating my credit card debt. But dont know who to trust.tHEY ARE OUT OF Beverly MA 01915, phone 978-865-6959.

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Is DMB Financial, Legitimate or a Scam? - Kim by

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  • Cash Money

    …ps, when the fees start adding up from the CC Companies they go on your principal balance. By the time you will settle an account it is wacked up so high in fees that you paid them, and then the settlement fee, you actually got nowhere money wise. Settlement company wins, you lose. But in most cases the client is so glad to be rid of the debt they dont complain.

  • Cash Money

    Well if you dont mind several calls from creditors and letting all your accounts fall behind, killing your credit score and getting sued its great. Other than that it sucks. I worked in the industry and things aren’t generally explained the way they really are. Debt settlement companies cannot settle your debt with a creditor until you are behind on payments to the creditor. Then you have to keep paying to the settlement company until there is enough money built up to start to settle debts. Yes you will be sued on a 48 month program. Probably several times. Too long. If you can get some money and fall behind maybe 3 months +, then the company can start to settle your debts at that point, possibly avoiding suit. This is not for the faint of heart. I would avoid it like the plague. Customers are not advised they will be sued and are taken into the program generally on false pretenses. Actually DmB is one of the better companies, but they are not doing anything you couldnt do youself.

  • Guccififi

    Hello,
    I have the same amount of debt and have been researching solutions for a while. Unfortunately, debt consolidation has always been listed as the wrong way to go about it. You will end up paying much more than you originally owed. The debt seems less, but it’s because it’s being stretched out over a longer period of time. The only real way of getting yourself out of debt is creating a budget, spending much less than you earn, and trying to make more than the minimum payment. Also, try calling your credit card companies and explaining your situation. Sometimes they are willing to work out a plan with you. I feel your pain. It will get better.

  • Pandooora

    My son got into something similar and it was a scam..

  • Scott Johnson

    TASC/AFCC members fees used to be 15 – 18% of enrolled debt – Why the 40% fee increase from the old standards – Depending on the state in which this person resides – the fee being charged could execeed state limits

    Statement From TASC to the FTC 28 April 2010 -
    These fees, commonly between 15% and 18% of enrolled debt,

    http://www.ftc.gov/os/comments/tsrdebtrelief/543670-00345.pdf

  • Msullivan

    DMB Financial is a debt settlement agency. They have fans and detractors but they have been around for a while. I cannot say that you will be satisfied with their service or like them as a company, but I can tell you that debt settlement in general will do significant harm to your credit rating so if your goal is to protect your credit rating you are chasing the wrong solution.

    Debt settlement is designed to get you out of debt for as little cash as possible at the expense of your credit rating. It does not consolidate your debt. A debt settlement company will refuse payment on accounts until creditors agree to settle for less than the amount owed. That means payments will be late and recorded as late. There may be charge offs. There may be collection efforts. And if unsuccessful, there may be judgments and liens or garnishment. if successful, there may be tax liability for amounts over $600 that are forgiven.

    Debt settlement can be a viable option for debtors who cannot pay off their debts in full and cannot qualify for a Chapter 7 bankruptcy filing. And be careful of advisers who are offering help. You need to help yourself. 

    Good Luck!

  • DavidL

    Hi Kim     Debt settlement is primarily for persons who cannot afford to keep making their credit card minimum payments, or who have already fallen behind on these payments. If you are in either of these situations, your credit score is going to be damaged. If you are able to make your payments you really should  question enrolling in any debt settlement program, or even attempting to settle on your own.
       Regarding your payments, if you figure they will settle for just over 50% of your original debt amount it appears their fee is around 25% of the debt amount you enrolled. I am not sure what the basis is for their fee, but it does not seem to be out of line with others that are out there in the marketplace, and if you truly need to get your debts settled could be well worth paying. Also, if you do proceed with them and could afford a higher payment amount, that would shorten your program, which means they could settle your debts sooner and as Damon says below, lessen the chance of problems associated with a creditor filing suit.

    • http://DamonDay.com/ Damon Day

      Hello David,

      I agree with most of what you said, but I disagree that 25% of the debt enrolled is a typical or reasonable fee. I know there are others out there that charge that much, but I also know there are a lot of programs out there that charge less. Since Kim is trying to figure out if DMB is the best option for her, it would be important for her to know that she could easily save 3,000 to 5,000 in fees by comparing other programs as well as save even more if she wanted to learn how to negotiate with creditors directly.

      In my opinion if DMB is really charging Kim about 8,000 dollars in fees to settle 31,000 in debt, and then stretching out the program for 4 years in order to facilitate their outrageous fee, that is certainly not a pro consumer program. Of course that is my opinion which is why I encourage Kim to look at other options that I think make more sense for consumers.

    • http://GetOutOfDebt.org Steve Rhode

      Back the bus up…I missed this before, 25% of enrolled debt is not out of line? What about others that are charging 15% of debt saved? In that case it seems the 25% of debt enrolled is extremely high.

      In this case a 25% of enrolled debt would equal a settlement fee of about $8,000. A 15% of savings program would cost about $2,500 using the 50% settlement rate you stated. Heck the savings on fees alone would significantly reduce the time to settle.

      • Rob2D2

        It’s not out of the line considering Freedom and a few others charge 20-23%. But it is high in comparison to those organizations that charge below 20% of  debt (Savings/Flat)

      • http://DamonDay.com/ Damon Day

        So would it be fair to say that consumers should not bother looking into DMB financial or Freedom Debt Relief because their fees are outrageous and will prolong the settlement program, making it more likely that the consumer is sued?

      • Rob2D2

        I think it’s fair to say consumers should look at a number of companies, ranging from DMB to lower priced organizations,  and then make a decision… similar to what anyone would do with any type of service/product. 

      • http://DamonDay.com/ Damon Day

        Ok, I can agree with that as long as they are made aware of the other options for comparison. Choice is always good.

      • Jess

        To the Get Out Of Debt Guy, after inputting my information for someone to contact me via your site DMB financial contacted me, if you are not affiliated with them how did this happen, now after reading this information I have realized that I most likely made a mistake with giving my information out

      • http://GetOutOfDebt.org/ Steve Rhode

        I have no relationship or affiliation with them at all. We share no information with them.

        The likely ways would be if you gave your information to another party, filled out something on their site, or had contacted them previously.

        I can assure you, your information did not come from us.

  • http://DamonDay.com/ Damon Day

    Hello Kim, 

    I don’t have enough information about your financial situation to tell you whether or not a debt settlement strategy is a good option for you. I can tell you though, that stretching a debt settlement program over 4 years is usually not a very good idea, and really increases the likelihood of a creditor filing a lawsuit.

    You also mentioned that you were concerned about your credit. This will certainly impact your credit for several years.

    I also am suspicious that their fees might actually be pretty high. 520 dollars over 48 months is about 25,000 dollars. Typically a settlement company will estimate their savings at between 40 and 60 percent. That would mean that their fee seems to be pretty steep. If you want to send me over their contract I will take a look at it for you and give you my opinion. Depending on your circumstances, if debt settlement does make sense, it is probably pretty likely that we can figure out a way to settle the debt for a lot less money and in a much quicker time frame then they are quoting you.

    You can contact me through my site at DamonDay.com

    • http://DamonDay.com/ Damon Day

      I recently received an email from a consumer asking about DMB Financial. According to the consumer, the sales rep from DMB told her that their settlement program would not hurt her credit rating even though she was current on all of her payments at this time.

      Wonder if this was a deliberate attempt to gloss over this issue to make a sale, or another case of a sales person offering advice about something that they clearly didn’t understand themselves?

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