Quick Answer: Level One Law faces a federal lawsuit alleging it’s a scam after a client paid over $21,000 but only had 1% of her $59,471 debt resolved over nearly two years. The Tennessee woman claims the firm misled her about negotiations, continued withdrawing funds after stopping services, and worsened her financial situation despite promises to settle debts and improve credit.
Case Information
- Filing Date: March 12, 2025
- Court: U.S. District Court, Middle District of Florida (Tampa Division)
- Plaintiff: Ruby E. Pineda
- Defendant: Michel Law, LLC, d/b/a Level One Law
- Case No.: 8:25-cv-00587
Allegations at a Glance
Ruby Pineda, a Tennessee resident facing financial hardship due to medical issues, alleges that Level One Law misled her into a debt relief program that ultimately worsened her financial situation. Despite paying over $21,000 into the program, she claims the firm failed to settle her debts, improve her credit, or provide the promised legal support.
Key Allegations
- Defendant promised to negotiate debts and improve Plaintiff’s credit score.
- Plaintiff enrolled $59,471 of debt and made monthly payments of $877.27.
- Only 1% of Plaintiff’s debt was resolved over nearly two years.
- Defendant misled Plaintiff about ongoing negotiations with creditors.
- Defendant allegedly continued withdrawing funds even after ceasing services.
- Plaintiff suffered financial harm, emotional distress, and credit damage.
Legal Claims
Credit Repair Organizations Act (CROA) – deceptive practices, premature charges, and missing required disclosures
Tennessee Consumer Protection Act (TCPA) – unfair and deceptive business practices
Fraud – intentional misrepresentations regarding debt and credit services
Negligent Misrepresentation – false promises made without proper care
Legal Malpractice – breach of attorney duties to client
Breach of Contract – failure to perform agreed-upon debt resolution services
Breach of Fiduciary Duty – mismanagement of funds and prioritization of firm’s interests over Plaintiff’s
Relief Sought
Actual damages for financial losses and emotional distress
Punitive damages for willful misconduct
Attorney’s fees and court costs
Injunctive and equitable relief as deemed appropriate
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The Bottom Line
This case highlights the potential risks of enrolling in debt relief programs without full transparency and accountability. Consumers are urged to thoroughly vet such services—especially those involving legal representation—before entrusting firms with their financial future.
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Legal Disclaimer
All claims outlined in this lawsuit are allegations only. The defendant has not yet responded in court. Cases may be dismissed, settled, or otherwise resolved without a finding of liability.
Update
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
