PROVIDENCE, R.I. – Attorney General Peter F. Neronha introduced immediately the submitting of a lawsuit in opposition to Michael Moccia and Palisade Authorized Group, PLLC, a debt administration service supplier, alleging they violated Rhode Island’s Unfair and Misleading Commerce Practices Act (DTPA).
As alleged within the criticism, filed in Windfall Superior Courtroom, Palisade operated and engaged in unlicensed debt-management companies in Rhode Island, disguising their enterprise as a legislation agency. Moreover, Palisade harmed Rhode Islanders by charging unlawful and extreme charges and damaging shoppers’ credit score scores. Legal professional Common Neronha is searching for civil penalties and injunctive aid, together with requiring Palisade to refund charges to all affected Rhode Island shoppers and compelling Palisade’s compliance with the state’s legal guidelines concerning debt-management companies.
As alleged, Michael Moccia is the only real member and Managing Legal professional for Palisade. Moccia maintains a legislation workplace in Boca Raton, Florida.
“We’ll by no means tolerate unlawful enterprise practices that benefit from susceptible Rhode Islanders,” saidNeronha. “These shoppers sought the defendants’ assist with managing their money owed. The unlucky irony right here is that whereas the affected shoppers sought assist to extend monetary stability, we allege that the defendants made issues worse via unlawful and extreme charges. Additional, those that supply debt administration companies in Rhode Island should register with DBR to make sure statutory and regulatory compliance, and we allege that the defendants didn’t.
“When an individual or entity deceives, harms, or takes benefit of shoppers, that’s the place we are available in,” Neronha continued. “Lately, it’s exhausting sufficient to afford fundamental requirements with out unhealthy actors, who prioritize income over individuals, making issues worse.”
Shoppers who imagine they might have been victims of unfair client practices are inspired to contact the Legal professional Common’s Workplace by calling 401-274-4400 or finishing a web based complaint form.
Go well with: Palisade Charged Extreme Charges
As alleged within the criticism, Palisade charged its Rhode Island shoppers unlawful and extreme charges for its debt administration companies. Rhode Island legislation caps a debt service supplier’s charge at 30% of the negotiated debt aid – and the p.c assessed relies on the financial savings they negotiate for shoppers. Opposite to Rhode Island legislation, Palisade expenses a flat fee of 27.5% of the whole debt enrolled, whatever the aid obtained for a client. That cost results in considerably greater charges for shoppers, and additional burdens shoppers that obtain little aid for his or her debt. As additional alleged, Palisade misled shoppers about how their month-to-month funds can be utilized to their debt settlement plan.
For instance, as alleged, our Workplace acquired a criticism from a client who enrolled in Palisade’s debt aid program. Upon enrolling, Palisade promised to scale back the buyer’s debt in six months for a month-to-month charge. After making funds for eleven months, the buyer didn’t obtain the aid she anticipated.
Go well with: Palisade Supplied Unlicensed Providers
As additional alleged, the defendants illegally operated their debt-management companies in Rhode Island. Rhode Island legislation obligates debt-management service suppliers to register with the Division of Enterprise Regulation and to adjust to statutory and regulatory safeguards for shoppers. Palisade didn’t register, nor did they meet such requirements.
Along with submitting this criticism, the Workplace will concurrently share our criticism with the Rhode Island Judiciary’s Disciplinary Board for the unauthorized apply of legislation.
Misleading Commerce Practices Act
In 2021, Legal professional Common Neronha labored with the Common Meeting to go laws that restored the authority of the Workplace of the Legal professional Common to guard Rhode Island shoppers in opposition to violations of the DTPA. Different efforts led by the Legal professional Common beneath the DTPA embrace a lawsuit in opposition to a residential solar company for allegedly scamming Rhode Islanders, a swimsuit in opposition to a contractor for alleged illegal conduct, halting a Certificate of Good Standing scheme, in addition to different investigations.
In December 2024, the Workplace filed a lawsuit in opposition to a nationwide actual property administration company with properties in Rhode Island, alleging they violated the DTPA by assessing unlawful software charges, in addition to designed and carried out an arduous software course of for these searching for cheap lodging for disabilities.
Moreover, the Workplace filed a lawsuit in opposition to native actual property dealer, Kyle Seyboth, and related defendants in November 2024, alleging they violated the DTPA by deceiving householders with restricted English proficiency, executing a “foreclosures rescue” scheme the place the householders believed they have been refinancing their mortgage when in truth they have been executing paperwork for the sale of their residence for considerably lower than market worth.
And in 2023, the Workplace sued Pioneer Investments, LLC for failing to adjust to quite a few state rental, lead hazard, and client safety legal guidelines that positioned the well being and security of a whole bunch of renters in danger, and which constituted unfair market practices.
Particular Assistant Legal professional Common Jordan Mickman, Chief of the Civil Rights Unit and Client Investigator Julissa Ulloa Nin dealt with the matter on behalf of the Workplace of the Legal professional Common.
