Yang

ORDER DENYING MOTION TO DISMISS OR, IN THE ALTERNATIVE, FOR SUMMARY JUDGMENT

Presently before the Court is DTS Financial Group’s (“defendant”) motion to dismiss the first and second causes of action of Kyu Y. Yang and Jae S. Yang’s (“plaintiffs”) complaint for failure to state a claim. Alternatively, defendant asks the Court to convert its motion into one for summary judgment by considering the extrinsic evidence submitted with its motion.

BACKGROUND

A. Facts

In deciding the present motion, the Court assumes the truth of the complaint’s allegations and presents only those allegations necessary to decide the present motion. Before May 1, 2006, plaintiffs became concerned about their debt burden because they could only make minimum payments on certain obligations. (Compl. ¶ 27.) They discovered defendant’s website, which advertised a “Debt Settlement Strategy” by which debtors would pay defendant instead of creditors and defendant would negotiate a fractional repayment of the debt. (Id. ¶ 33.) During a telephone call, defendant explained to plaintiffs that they would pay a monthly amount to defendant upon acceptance into defendant’s program. (Id. ¶ 41.) Some of this money would…