FORT MYERS, Fla. – A Florida woman has filed a lawsuit against a credit repair firm, alleging it failed to resolve her debts despite her paying thousands of dollars for its services, in hopes of becoming debt free.
Plaintiff Juliette D. Stotler filed her lawsuit November 25 in the U.S. District Court for the Middle District of Florida, Fort Myers Division.
The named defendant is Michel Law LLC doing business as Level One Law.
“Ultimately, Plaintiff paid Defendant thousands of dollars in exchange for misrepresented and deficient services that, rather than deliver any relief to Plaintiff, instead caused nothing but additional and substantial harm to Plaintiff’s already vulnerable and sensitive financial position,” Stotler’s complaint states.
Stotler alleges Level One violated the Credit Repair Organizations Act, the Florida Credit Services Organizations Act, the Florida Credit Counseling Services Act, and the Florida Deceptive and Unfair Trade Practices Act.
According to the filing, Level One, based in St. Petersburg, is a credit repair organization and debt management provider that claims to assist consumers with becoming debt free and improving their overall financial health, including their credit scores.
Stotler, a Port Charlotte resident, said she began receiving solicitations from the defendant in November 2022. She was led to believe she was approved for a debt consolidation loan.
After attending an in-person presentation, Stotler claims she was told the firm’s services would help improve her credit scores. A representative explained the plaintiff would make monthly payments and the defendant would then attempt to resolve her debts.
“Defendant further represented that it would get to work promptly and prevent Plaintiff’s creditors from contacting Plaintiff,” the filing states.
“Additionally, Defendant represented, both explicitly and by implication, that ultimately Defendant’s services would have a positive impact on her credit score as Plaintiff would be able to resolve obligations faster than if she were to do things on her own, and that its services would reestablish Plaintiff’s credit and provide her a fresh financial start.”
Stotler entered into a contract and began making payments of about $900 a month.
“Defendant failed to meaningfully disclose or discuss the nature of its fee structure and how it was paid for services, instead suggesting to Plaintiff that it did not get paid until debts were resolved,” the complaint states.
Stotler alleges the firm improperly charged her for services before such services were performed.
“After signing up with Defendant, Plaintiff was told that, rather than paying her creditors or keeping up with payments, she should instead divert those funds to Defendant who would use the funds to enter into negotiations with Plaintiff’s creditors,” the filing states.
“Rather than resolve Plaintiff’s debts as it was hired to do, Defendant simply retained Plaintiff’s monthly payments without performing any work that would justify the retention of such payments.”
Stotler contends the firm ultimately cost her more to resolve certain debts than the balance of such debts at the time she enrolled for its services.
The defendant, along with a “Strategic Consulting” company, currently are the subject of an action by the federal Consumer Financial Protection Bureau in New York federal court.
According to Stotler’s lawsuit, StratFS LLC and its parent company Strategic Family Inc. have been engaged in a “years-long deceptive and misleading campaign” of selling unlawful debt relief services to consumers across the country, with such unlawful practices including the utilization of façade law firms like Level One “in the perpetuation of the scheme.”
Stotler seeks actual damages, punitive damages, and attorneys’ fees and costs.
Sulaiman Law Group Ltd. in Lombard, Illinois, is representing her in the action.
