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DMB Financial Settles Trustee Suit for Debt Settlement Fees

I bet DMB Financial wishes they would stop appearing in newsworthy resources.

A couple of months ago, I wrote about a bankruptcy trustee in North Carolina that sued them to claw back debt settlement fees charged to a consumer that then went on to file Chapter 7. Click here to read that.

Here is the original complaint by the Trustee. The original complaint stated the consumer had paid $20,395 to DMB Financial. Although it is not clear how much of that money was for DMB Financial fees and what went to creditors if any.

Well, DMB Financial wound up entering a settlement agreement with the Trustee. They deny any wrongdoing or unlawful conduct and agree to return money to the consumer.

In this settlement it says DMB Financial will immediately pay $4,450 to the Trustee. It states that amount “constitutes the amount of monetary consideration provided.”

The Trustee clawback is always hanging over the head of every debt relief company, and frankly, I’m surprised it doesn’t happen more often.

Before anyone asks, I just checked on the CFPB case against DMB Financial, and there is no real update.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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