If you paid Dovenmuehle a fee to make a North Carolina mortgage payment by phone or automated line between April 2020 and January 2026, you are paid automatically — there is no claim form to file.
What Is This Settlement About?
Dovenmuehle Mortgage, Inc. ("DMI") has agreed to a $9,000,000 settlement to resolve a class action alleging it charged North Carolina borrowers illegal fees to make their mortgage payments by phone or through an automated interactive voice response (IVR) system. These charges are commonly called "pay-to-pay" or convenience fees.The lawsuit, filed in the U.S. District Court for the Middle District of North Carolina, alleged that these fees violated the North Carolina Debt Collection Act and the North Carolina Unfair and Deceptive Trade Practices Act (§ 75-1.1). The complaint claimed the amounts were not authorized by the borrowers' mortgage agreements or by North Carolina law. After the court denied DMI's motion to dismiss and certified the class, the parties reached this settlement through two full-day mediation sessions.
DMI denies any and all wrongdoing and does not admit liability. It agreed to the settlement solely to avoid the cost, burden, and uncertainty of continued litigation. The settlement fund is non-reversionary — no unused money returns to DMI.
Who Qualifies?
The settlement class is defined as all persons:· with a residential mortgage loan securing a property in North Carolina,
· serviced or subserviced by Dovenmuehle, and
· who paid a fee to Dovenmuehle for making a loan payment by telephone or IVR between April 10, 2020, and January 13, 2026.
Dovenmuehle's records identify approximately 3,401 class members across roughly 13,427 fee transactions. If you are a class member, you were identified from DMI's own business records and will be notified directly by the settlement administrator. Co-borrowers on the same loan are treated as a single class member and receive one shared payment per loan.
How Much Can You Get?
Each class member's payment is a pro rata share of the settlement fund, based on the number of pay-to-pay fees they paid during the class period. The settlement administrator estimates class members will receive approximately $425 per pay-to-pay fee paid, before the deduction of administrative costs, a service award, and attorney's fees. The final per-member amount may change depending on those costs.Payments come out of the $9,000,000 fund after the court-approved deductions: administrative costs, a service award of up to $25,000 that the class representative may request, and attorney's fees and expenses of up to 35% of the fund. Any money left over after payments and expenses is not returned to DMI — it goes to a court-approved nonprofit (the parties propose Legal Aid of North Carolina) as a cy pres award.
As additional relief, DMI has agreed to stop charging or collecting pay-to-pay fees from North Carolina borrowers for five years from the settlement's effective date, unless the law changes to expressly authorize such charges.
How Do You Get Paid?
There is no claim form. If the court grants final approval and you remain in the class (you do nothing and do not opt out), you will automatically receive a payment. By default, that payment is a paper check mailed to you. If you prefer, you can choose to receive an electronic payment — via Venmo, PayPal, or direct deposit — by selecting that option on the official settlement website.Settlement checks will be valid for 120 days. If funds remain after all payments and expenses, class members may be eligible for a second distribution, provided the cost of issuing it is not prohibitive. Because payment is automatic, the most important thing for class members to do is make sure the administrator has a current mailing address.
Key Deadlines
· September 23, 2026 — deadline to opt out (exclude yourself) or object to the settlement.· November 5, 2026 — the court's Final Approval Hearing, at which the court will decide whether to approve the settlement and the requested fees and service award.
If you opt out, you will not receive a payment, but you keep the right to pursue your own individual lawsuit against DMI. If you do nothing, you stay in the class, give up the right to sue DMI over these fees, and receive your automatic payment if the settlement is approved. There is no claim deadline for class members who stay in — payment is sent automatically after the settlement becomes final.
Frequently Asked Questions
What is the Dovenmuehle Mortgage settlement about?
A $9,000,000 settlement resolves a class action alleging that Dovenmuehle Mortgage, Inc. (DMI) violated the North Carolina Debt Collection Act and the North Carolina Unfair and Deceptive Trade Practices Act by charging borrowers a fee to make mortgage payments by telephone or interactive voice response (IVR). These are often called pay-to-pay or convenience fees. DMI denies any wrongdoing and settled to avoid the cost and risk of continued litigation.
Who is included in the Dovenmuehle settlement class?
The settlement class is all persons with a residential mortgage loan securing a property in North Carolina, serviced or subserviced by Dovenmuehle, who paid a fee to Dovenmuehle for making a loan payment by telephone or IVR between April 10, 2020, and January 13, 2026. DMI's records identify about 3,401 class members.
Do I have to file a claim to get paid?
No. There is no claim form. If the court approves the settlement and you remain in the class, you will automatically receive a payment — a paper check mailed to you by default, or an electronic payment (Venmo, PayPal, or direct deposit) if you choose that option on the official settlement website. You do not need to submit any documentation.
How much will class members receive?
Payments are a pro rata share of the settlement fund based on how many pay-to-pay fees each class member paid. The settlement administrator estimates class members will receive approximately $425 per pay-to-pay fee paid, before administrative costs, a service award, and attorney's fees are deducted. The exact amount may change depending on those costs.
What are the deadlines in the Dovenmuehle settlement?
The deadline to exclude yourself (opt out) or object to the settlement is September 23, 2026. The court's Final Approval Hearing is scheduled for November 5, 2026. Because payment is automatic, class members who do nothing and stay in the class do not have a claim deadline to meet.
Official Settlement Notice
Sources
· Class Settlement and Release Agreement, Custer v. Dovenmuehle Mortgage, Inc., No. 1:24-cv-00306 (M.D.N.C.)· Class Notice, Custer v. Dovenmuehle Mortgage, Inc.
· Official settlement website: Dovenmuehle Phone Fee Lawsuit
