PROVIDENCE, R.I. – 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,” saidNeronha. “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,” Neronha continued. “These days, it’s hard enough to afford basic necessities without bad actors, who prioritize profits over people, making things worse.”
Consumers who believe they may have been victims of unfair consumer practices are encouraged to contact the Attorney General’s Office by calling 401-274-4400 or completing an online complaint form.
Suit: Palisade Charged 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.
Suit: Palisade Provided 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.
Deceptive Trade Practices Act
In 2021, Attorney General Neronha worked with the General Assembly to pass legislation that restored the authority of the Office of the Attorney General to protect Rhode Island consumers against violations of the DTPA. Other efforts led by the Attorney General under the DTPA include a lawsuit against a residential solar company for allegedly scamming Rhode Islanders, a suit against a contractor for alleged unlawful behavior, halting a Certificate of Good Standing scheme, as well as other investigations.
In December 2024, the Office filed a lawsuit against a national real estate management corporation with properties in Rhode Island, alleging they violated the DTPA by assessing illegal application fees, as well as designed and implemented an arduous application process for those seeking reasonable accommodations for disabilities.
Additionally, the Office filed a lawsuit against local real estate broker, Kyle Seyboth, and associated defendants in November 2024, alleging they violated the DTPA by deceiving homeowners with limited English proficiency, executing a “foreclosure rescue” scheme where the homeowners believed they were refinancing their mortgage when in fact they were executing paperwork for the sale of their home for significantly less than market value.
And in 2023, the Office sued Pioneer Investments, LLC for failing to comply with numerous state rental, lead hazard, and consumer protection laws that placed the health and safety of hundreds of renters at risk, and which constituted unfair market practices.
Special Assistant Attorney General Jordan Mickman, Chief of the Civil Rights Unit and Consumer Investigator Julissa Ulloa Nin handled the matter on behalf of the Office of the Attorney General.
Author: Rob Borkowski
Rob has worked as reporter and editor for several publications, including The Kent County Daily Times and Coventry Courier, before working for Gatehouse in MA then moving home with Patch Media. Now he's publisher and editor of WarwickPost.com. Contact him at editor@warwickpost.com with tips, press releases, advertising inquiries, and concerns.
This is a test
