Attorney General Peter F. Neronha announced today the filing of a lawsuit against Michael Moccia and Palisade Legal Group, PLLC, a debt-management service provider, alleging they violated Rhode Island’s Unfair and Deceptive Trade Practices Act (DTPA).
As alleged in the complaint, filed in Providence Superior Court, Palisade operated and engaged in unlicensed debt-management services in Rhode Island, disguising their business as a law firm. Additionally, Palisade harmed Rhode Islanders by charging illegal and excessive fees and damaging consumers’ credit scores. Attorney General Neronha is seeking civil penalties and injunctive relief, including requiring Palisade to refund fees to all affected Rhode Island consumers and compelling Palisade’s compliance with the state’s laws regarding debt-management services.
As alleged, Michael Moccia is the sole member and Managing Attorney for Palisade. Moccia maintains a law office in Boca Raton, Florida.
“We will never tolerate illegal business practices that take advantage of vulnerable Rhode Islanders,” said Attorney General Neronha. “These consumers sought the defendants’ help with managing their debts. The unfortunate irony here is that while the affected consumers sought help to increase financial stability, we allege that the defendants made matters worse through illegal and excessive fees. Further, those who offer debt management services in Rhode Island must register with DBR to ensure statutory and regulatory compliance, and we allege that the defendants did not.
“When a person or entity deceives, harms, or takes advantage of consumers, that’s where we come in,” Attorney General Neronha continued. “These days, it’s hard enough to afford basic necessities without bad actors, who prioritize profits over people, making things worse.”
Excessive Fees
As alleged in the complaint, Palisade charged its Rhode Island consumers illegal and excessive fees for its debt management services. Rhode Island law caps a debt service provider’s fee at 30% of the negotiated debt relief – and the percent assessed is based on the savings they negotiate for consumers. Contrary to Rhode Island law, Palisade charges a flat rate of 27.5% of the total debt enrolled, regardless of the relief obtained for a consumer. That charge leads to significantly higher fees for consumers, and further burdens consumers that receive little relief for their debt. As further alleged, Palisade misled consumers about how their monthly payments would be applied to their debt settlement plan.
For example, as alleged, our Office received a complaint from a consumer who enrolled in Palisade’s debt relief program. Upon enrolling, Palisade promised to reduce the consumer’s debt in six months for a monthly fee. After making payments for eleven months, the consumer did not receive the relief she expected.
Providing Unlicensed Services
As further alleged, the defendants illegally operated their debt-management services in Rhode Island. Rhode Island law obligates debt-management service providers to register with the Department of Business Regulation and to comply with statutory and regulatory safeguards for consumers. Palisade did not register, nor did they meet such standards.
In addition to filing this complaint, the Office will concurrently share our complaint with the Rhode Island Judiciary’s Disciplinary Board for the unauthorized practice of law. – Source
