The Alleviate Financial Solutions lawsuit landscape as of mid-2026 includes one active class action in federal court, several individual suits under the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act that have mostly settled, a small Texas regulatory penalty, and nearly 200 complaints on the company’s Better Business Bureau profile. If you are a current or prospective client of the Irvine, California debt settlement company, here is what those cases involve and what protections you have.
The Pending Class Action: Deis v. Alleviate Financial Solutions
In October 2025, Michael Lynn Deis filed a class action against Alleviate Financial Solutions in the U.S. District Court for the Central District of California. The case is assigned to Judge R. Gary Klausner and is categorized under “Other Statutory Actions,” with multiple law firms representing the plaintiff class.1Law360. Deis v. Alleviate Financial Solutions, LLC et al Specific allegations were not available from the docket entries reviewed. It is the only known class action against the company and remains pending.
Individual Federal Lawsuits
Since 2023, Alleviate has been named in a series of individual federal cases. Most allege violations of the Telephone Consumer Protection Act, which restricts unsolicited robocalls and automated text messages.
Tatum v. Alleviate Financial Solutions (2025)
Elston Tatum filed a TCPA lawsuit in the Eastern District of Texas in October 2025. The parties filed a joint notice of settlement on April 2, 2026, and the court stayed the case for 45 days. In May 2026, the company filed an answer that included a stipulation for dismissal, indicating the settlement was being finalized.2PACER Monitor. Tatum v. Alleviate Financial Solutions LLC
Rosene v. Alleviate Financial Solutions (2024)
Steve Rosene filed a TCPA suit in the Central District of California in September 2024. The complaint named CEO Michael Barsoum personally as a defendant, along with the company and an entity called Set Forth Inc.3CourtListener. Steve Rosene v. Alleviate Financial Solutions LLC The parties settled in January 2025, and the case was voluntarily dismissed in February 2025.
Patterson v. Alleviate Financial Solutions (2025)
Brad Patterson brought a TCPA case in the Southern District of Indiana on January 2, 2025. It was terminated on May 8, 2025. Public docket information does not specify whether it ended by settlement, dismissal, or another resolution.4PACER Monitor. Patterson v. Alleviate Financial Solutions LLC
Reed v. Alleviate Financial Solutions (2023)
Roger L. Reed II filed a consumer credit lawsuit under the Fair Debt Collection Practices Act in the Central District of California in 2023. The court stayed the case pending arbitration, the parties settled, and Reed filed a voluntary dismissal with prejudice in May 2024.5CourtListener. Roger L. Reed, II v. Alleviate Financial Solutions, LLC
Bellefeuille v. Alleviate Financial Solutions (2023)
A case filed in the Western District of Michigan in September 2023 was terminated about a month later, in November 2023. Further details about the claims or resolution were not available from the docket.6CourtListener. Bellefeuille v. Alleviate Financial Solutions, LLC
The TCPA pattern is worth noting. Alleviate’s website discloses that by submitting contact information, consumers authorize the company and its affiliates to be contacted using automatic telephone dialing systems and pre-recorded voices, regardless of Do-Not-Call list status.7Alleviate Financial Solutions. Debt Settlement Program Whether that consent language holds up is often the contested question in TCPA cases, and the quick settlements in Rosene and Tatum suggest the company has preferred to resolve those disputes without a ruling.
Texas Regulatory Penalty
In April 2022, the Texas Office of Consumer Credit Commissioner imposed a $500 administrative penalty on Alleviate for failing to timely file its 2021 annual report by the January 31, 2022 deadline, in violation of Chapter 394 of the Texas Finance Code and a prior 2019 OCCC order. The company was required to pay the fine and submit the overdue report within 30 days.8Office of Consumer Credit Commissioner. OCCC Case No. L22-00052 Final Order The penalty was a paperwork compliance matter, not a finding of consumer harm.
What Consumers Are Complaining About
The company’s BBB profile shows 190 consumer complaints filed in the last three years, with 68 closed in the most recent 12 months. The categories break down as billing issues (68), service problems (58), product issues (26), order issues (20), and smaller numbers under customer service and advertising.9Better Business Bureau. Alleviate Financial Solutions LLC Complaints Only 28 are marked “Resolved.” The remaining 162 are marked “Answered,” meaning the company responded but the consumer either remained dissatisfied or did not confirm resolution.
The complaints tend to raise the same problems:
- Money sitting in dedicated savings accounts for months with no creditor negotiations taking place.
- Sales pitches that consumers describe as misleading, including promises of a consolidation loan after six months in the program that never materialized, and descriptions of the program as a single monthly payment plan when it was actually a negotiation-based settlement program.
- Disputed success fees, legal protection fees, custodial account fees, and ACH transaction fees.
- Difficulty retrieving funds after cancellation, with some consumers reporting they had to close their personal checking accounts to stop automated withdrawals.
- Sharp drops in credit scores, because the program requires clients to stop paying creditors directly.
The Third-Party Fee Dispute
A recurring source of friction is Alleviate’s fee structure. Client savings accounts are administered by a third party called Debt Pay Gateway, and consumers report being charged custodial maintenance fees, ACH withdrawal fees, and disbursement fees by that administrator.10Alleviate Financial Solutions. FAQ In its BBB responses, Alleviate consistently distinguishes its own fees from those charged by the custodial administrator and optional legal service providers, stating that those charges are governed by separate agreements the client signed directly with those third parties.
Consumers frequently push back on that distinction. A May 2026 complaint described paying nearly $160 in ACH fees just to withdraw funds from the account. An April 2026 complaint disputed being charged a disbursement fee to process a refund of the consumer’s own overpayment.9Better Business Bureau. Alleviate Financial Solutions LLC Complaints Whether consumers understood at enrollment that they were entering into separate agreements with multiple entities is a question running through many of the disputes.
Not the Same Company as Strategic Financial Solutions
Alleviate Financial Solutions is not connected to Strategic Financial Solutions (StratFS), the New York-based debt relief enterprise sued by the CFPB and seven state attorneys general in January 2024 for allegedly collecting more than $100 million in illegal advance fees.11Consumer Financial Protection Bureau. CFPB and Seven State Attorneys General Sue Debt Relief Enterprise Strategic Financial Solutions The court’s detailed breakdown of StratFS subsidiaries and affiliates — Atlas Debt Relief, Timberline Financial, Versara Lending, and others — does not mention Alleviate.12CaseMine. Consumer Fin. Prot. Bureau v. StratFS, LLC The two operate in the same industry and face broadly similar types of consumer complaints, but they are separate companies.
Your Legal Protections
If you have been enrolled in an Alleviate program, several laws apply to your situation. The federal Telemarketing Sales Rule prohibits debt settlement companies from collecting fees before actually settling a debt, and Alleviate says it follows that rule by charging fees only after settlements are completed.10Alleviate Financial Solutions. FAQ
California’s Fair Debt Settlement Practices Act goes further. It requires specific written disclosures before enrollment, monthly accounting statements, and the right to cancel at any time without penalty. It also gives consumers a private right of action with statutory damages between $1,000 and $5,000 per violation, plus actual damages and attorney fees.13Nolo. California’s Fair Debt Settlement Practices Act
The Fair Debt Collection Practices Act, the basis for the Reed suit, provides up to $1,000 in statutory damages per violation along with attorney fees and actual damages. The TCPA provides statutory damages of $500 per unwanted robocall or automated text, trebled to $1,500 for willful violations. If you believe you have a claim, a consumer protection attorney can review your enrollment paperwork, call logs, and account statements to see whether one of these laws applies.