Dovenmuehle Mortgage Pay-to-Pay Fee Settlement (NC)
At a glance
- Status
- Pending final approval
- Defendant
- Dovenmuehle Mortgage, Inc.
- Settlement fund
- $9,000,000
- Claim deadline
- No claim deadline set yet
- No-proof cash option
- Yes
- Max documented payout
- Not publicly disclosed
- Administrator
- ILYM Group, Inc.
- Official site
- www.dovenmuehlephonefeelawsuit.com
- Court
- United States District Court, Middle District of North Carolina
- Case number
- Custer v. Dovenmuehle Mortgage, Inc., No. 1:24-cv-00306-CCE-LPA
Last verified October 10, 2026
Key dates
| Milestone | Date | What it means |
|---|---|---|
| Claim deadline | No claim deadline set yet | Last day to file for a payment |
| Opt-out (exclusion) deadline | September 23, 2026(passed) | Last day to leave the settlement and keep the right to sue |
| Objection deadline | September 23, 2026(passed) | Last day to object to the terms |
| Final approval hearing | November 5, 2026 | When the judge decides whether to approve the settlement |
| Expected payout | Not yet scheduled | Payments are not sent until after final approval and any appeals |
Where to file
Dovenmuehle Mortgage Pay-to-Pay Phone Fee Settlement (Custer v. Dovenmuehle) is administered by ILYM Group, Inc.. The only place to file is the official settlement website:
Verify on the official sitewww.dovenmuehlephonefeelawsuit.com
Administrator phone: (888) 250-6810
Filing is free. No legitimate settlement charges a fee to file a claim.
You cannot file on RecordingLaw.com. We are an independent publisher, not the settlement administrator, and we are not affiliated with any court, agency, or defendant.
What a 'pay-to-pay' fee is, and what happened here
A pay-to-pay fee, sometimes called a 'convenience fee,' is a charge a mortgage servicer adds when a borrower makes a payment by phone or through an automated Interactive Voice Response, or IVR, system instead of mailing a check or using a free online portal. Dovenmuehle Mortgage, Inc. (DMI) is a subservicer, meaning it handles the day-to-day servicing of a mortgage loan on behalf of the actual lender or investor who owns the loan. Many borrowers never see DMI's name on their monthly statement even though DMI is the company answering the phone.
A class action, Custer v. Dovenmuehle Mortgage, Inc., alleges that DMI charged North Carolina borrowers a fee every time they paid their mortgage by phone or IVR, from April 10, 2020 through January 13, 2026. The case was filed in the U.S. District Court for the Middle District of North Carolina.
Where the case stands, and why no money has moved yet
As of September 2026, the settlement has preliminary approval only. Chief District Judge Catherine C. Eagles granted preliminary approval on June 4, 2026, which lets the case move forward and notice go out to the class, but it does not authorize any payment.
Before a dollar can go out, the court has to hold a final approval hearing, currently scheduled for November 5, 2026, at 2 p.m. in Greensboro, North Carolina. Only after Judge Eagles grants final approval, and assuming no one appeals that decision, will payments begin. There is no payment date set yet. On August 3, 2026, class counsel filed their motion for attorneys' fees, costs, and a service award, which the court will also take up at the final approval stage.
Who is in the class, and where it is limited
This settlement covers a narrow group. You may be a class member only if all of the following are true:
- Your residential mortgage loan is secured by property in North Carolina.
- Dovenmuehle serviced or subserviced that loan.
- You paid a fee to make a payment by telephone or through Dovenmuehle's automated IVR system.
- That fee was paid between April 10, 2020, and January 13, 2026.
This is a North Carolina-only settlement. If your property is in another state, this settlement does not cover you, even if Dovenmuehle serviced your loan and charged a similar phone fee. A separate claim could exist for other states, but it is not part of this case.
How much people can realistically expect
There is no claim form for this settlement. Payment is automatic and calculated from Dovenmuehle's own servicing records, which determine who gets paid and how many fees they paid. Class members do not need to submit anything to be counted.
The settlement creates a $9,000,000 common fund. In its preliminary approval order, the court said this amount represents approximately $670 per fee paid. That is a gross figure, calculated before anything comes out of the fund, and it is not what a class member should expect to receive.
The official class notice estimates that, after subtracting administration costs, the service award, and attorneys' fees and expenses, class members will receive approximately $425 per pay-to-pay fee they paid, and it cautions that this number is subject to change. Class counsel have asked the court for $3,000,000 in attorneys' fees (one-third of the fund), about $80,533 in expenses, and a $25,000 service award for the class representative; the notice capped the fee request at 35% of the fund, and the court decides what is actually awarded.
The actual amount anyone receives depends on how many fees they personally paid, how many class members ultimately end up in the class, and what the court approves in attorneys' fees and administrative costs, which come out of the same fund before distribution. Someone who paid one phone fee during the class period will receive far less than someone who paid a dozen.
What proof is required
None. Because payment is automatic and based on Dovenmuehle's own records, class members are not asked to submit receipts, statements, or any other documentation.
What you can do right now
Because payment is automatic, there is genuinely nothing to file to get paid if Dovenmuehle's records already show you as a class member. The two actions the settlement allowed were opting out and objecting, and they are opposite moves. Both had to be postmarked no later than September 23, 2026; after that date, neither window is open.
If you opted out by September 23, 2026, you removed yourself from the class. An opt-out keeps the right to sue Dovenmuehle separately over these fees but gives up any share of the $9,000,000 fund.
An objection filed by that same September 23, 2026 deadline keeps the objector in the class and eligible for a payment, while telling the court in writing that you think some part of the settlement, such as the amount or the attorneys' fees, is unfair. The court will consider objections at the November 5, 2026 hearing.
Most class members do neither and simply wait for the automatic payment after final approval.
If you have questions about your loan or this notice
Dovenmuehle's role as a subservicer means the name on your monthly statement may not say 'Dovenmuehle.' If you are unsure whether Dovenmuehle serviced your North Carolina mortgage during the class period, the settlement administrator, ILYM Group, Inc., can look up your loan by phone at (888) 250-6810. If you believe you were charged an unfair or undisclosed fee on a mortgage that is not covered by this settlement, the North Carolina Attorney General's office and the Consumer Financial Protection Bureau both take complaints about mortgage servicing fees, and the CFPB has separately taken public action against illegal pay-to-pay fees in mortgage servicing.
Because payment here is automatic, no legitimate part of this process should ever ask you for money, a Social Security number, or bank login details to release your share.
Frequently Asked Questions
What is the Dovenmuehle pay-to-pay phone fee settlement about?
The lawsuit, Custer v. Dovenmuehle Mortgage, Inc., alleges Dovenmuehle Mortgage, Inc. charged North Carolina borrowers a fee to make mortgage payments by phone or through its automated IVR system. As of September 2026, the case has preliminary settlement approval but not final approval.
Do I need to file a claim to get paid?
No. Payment in this settlement is automatic and calculated directly from Dovenmuehle's own servicing records, so eligible class members do not need to submit a claim form or any documentation.
How much will I get from the Dovenmuehle settlement?
The court's preliminary approval order says the $9,000,000 fund represents approximately $670 per fee paid, but that is before deductions. The official class notice estimates class members will receive approximately $425 per pay-to-pay fee after attorneys' fees, costs, and the service award are subtracted. That estimate is not guaranteed, and your payment depends on how many fees you personally paid and on what the court approves.
Who is covered by this settlement?
You may be eligible if you had a residential mortgage loan secured by property in North Carolina that Dovenmuehle serviced or subserviced, and you paid a fee to make a payment by phone or IVR between April 10, 2020 and January 13, 2026. Borrowers outside North Carolina are not covered.
What is the difference between opting out and objecting?
Opting out removes you from the class and lets you pursue your own separate claim against Dovenmuehle, but you give up any payment from this fund. Objecting keeps you in the class and eligible for payment while telling the court in writing why you think some part of the settlement is unfair. Both opt-outs and objections had to be postmarked no later than September 23, 2026.
When will the money actually be paid?
No payment date has been set. Final approval will not be decided until the November 5, 2026 hearing in Greensboro, North Carolina, and payments cannot go out until after the court grants final approval, so as of September 2026 no money has moved yet.
Is this settlement only for North Carolina residents?
The class is defined by the location of the mortgaged property, not the borrower's current residence. It covers loans secured by property in North Carolina that Dovenmuehle serviced or subserviced, regardless of where the borrower lives today.
Will I owe taxes on this payment?
It depends on what the payment is meant to replace, so a refund of a fee you paid may be treated differently than other kinds of settlement income for tax purposes. Class members with questions should consult a tax professional or see the IRS's general guidance on settlements at IRS.gov.
Where can I check the status of this settlement?
The official settlement website, dovenmuehlephonefeelawsuit.com, and the administrator, ILYM Group, Inc., at (888) 250-6810, are the only reliable sources for updates on the Custer v. Dovenmuehle case.
How to tell a settlement notice is real
Check the case name, case number, and court against the official settlement site. Go to that site directly instead of clicking a link in an email or text. Nobody legitimate will call, text, or email out of the blue asking for your Social Security number, bank account, or card details, and nobody will charge you to file. Report anyone who does at ReportFraud.ftc.gov.
Already have a notice with a link or sender address? Paste it into our settlement notice checker to compare it with the official claim sites we track.
Informational only. Not legal, tax, or financial advice, and not affiliated with any settlement.
RecordingLaw.com is an independent legal-information publisher. We are not a law firm, not a settlement administrator, and not affiliated with, endorsed by, or acting on behalf of any court, government agency, defendant, or claims administrator described on this page. Reading this page does not create an attorney-client relationship.
We do not process claims and we never collect your claim information. You cannot file a claim on RecordingLaw.com. To file, opt out, object, or check your status, use only the official settlement administrator identified above. We link to it for your convenience.
Filing a legitimate claim is free. No legitimate settlement or administrator will charge you a fee to file, or ask for your Social Security number, bank, or card details by unsolicited call, text, or email. If someone does, it is likely a scam. Report it at ReportFraud.ftc.gov.
Deadlines, amounts, and approval status change and are set by the court. We verify against the official administrator and court records, but confirm the current details on the official site before acting. Nothing here guarantees eligibility, a payment, or any amount. Settlement payments may be taxable. See IRS Publication 4345. and consult a tax professional. For advice about your specific situation, consult a licensed attorney in your state. Affiliate disclosure.
Updates
Added the official notice's estimate of about $425 per fee after deductions, clarified that the court's $670 figure is before fees and costs, noted class counsel's fee request, updated the case status to September 2026, and clarified that the class is defined by where the mortgaged property is located.
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
North Carolina General Statutes, Chapter 75: Monopolies, Trusts and Consumer Protection.
§ 75-55Unconscionable meansIn force
No debt collector shall collect or attempt to collect any debt by use of any unconscionable means. Such means include, but are not limited to, the following: (1) Seeking or obtaining any written statement or acknowledgment in any form containing an affirmation of any debt by a consumer who has been declared bankrupt, an acknowledgment of any debt barred by the statute of limitations, or a waiver of any legal rights of the debtor without disclosing the nature and consequences of such affirmation or waiver and the fact that the consumer is not legally obligated to make such affirmation or waiver. (2) Collecting or attempting to collect from the consumer all or any part of the debt collector's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge. Nothing in this section shall be construed to prohibit the collection of filing fees, service of process fees, or other court costs actually incurred. The collection of such fees is not a violation of this Article or of Article 15 of Chapter 53 of the General Statutes.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at ncleg.gov
Sources and References
- Custer v. Dovenmuehle Mortgage, Inc., Official Settlement Website(dovenmuehlephonefeelawsuit.com)
- Custer v. Dovenmuehle Mortgage, Inc., Case Docket (CourtListener)(courtlistener.com)
- CFPB Takes Action to Stop Illegal Junk Fees in Mortgage Servicing(consumerfinance.gov).gov
- IRS Tax Topic 431, Canceled Debt, Foreclosures, Repossessions, and Abandonments (settlement/tax guidance)(irs.gov).gov
- North Carolina Department of Justice, Protecting Consumers(ncdoj.gov).gov
- Order Preliminarily Approving Settlement, Custer v. Dovenmuehle Mortgage, Inc., No. 1:24-cv-00306 (M.D.N.C. June 4, 2026)(dovenmuehlephonefeelawsuit.com)
- Official Class Notice, Custer v. Dovenmuehle Mortgage, Inc. (payment estimate, class definition, deadlines)(dovenmuehlephonefeelawsuit.com)
- Plaintiff's Memorandum in Support of Motion for Award of Attorneys' Fees, Costs, and Service Award, Custer v. Dovenmuehle Mortgage, Inc.(dovenmuehlephonefeelawsuit.com)