Attorney General Peter F. Neronha has initiated legal action against Michael Moccia and Palisade Legal Group, PLLC, accusing them of violating Rhode Island’s Unfair and Deceptive Trade Practices Act (DTPA). The lawsuit, filed in Providence Superior Court, alleges that Palisade operated as an unlicensed debt-management service under the guise of a law firm in Rhode Island.
The complaint claims that Palisade charged illegal and excessive fees to consumers and negatively impacted their credit scores. Attorney General Neronha is pursuing civil penalties and injunctive relief. This includes requiring Palisade to refund fees to affected consumers in Rhode Island and ensuring compliance with state laws regarding debt-management services.
Michael Moccia, identified as the sole member and Managing Attorney for Palisade, operates from Boca Raton, Florida. "We will never tolerate illegal business practices that take advantage of vulnerable Rhode Islanders," stated Attorney General Neronha. He added that while consumers sought help for financial stability, the defendants allegedly worsened their situation through unlawful fees.
Neronha emphasized the importance of registering with the Department of Business Regulation (DBR) for those offering debt management services in Rhode Island. He asserted that the defendants failed to comply with this requirement. "When a person or entity deceives, harms, or takes advantage of consumers, that's where we come in," he said.
Consumers who suspect they have been victims of unfair practices are urged to contact the Attorney General’s Office at 401-274-4400 or complete an online complaint form.
The complaint details how Palisade allegedly charged its clients illegal fees by imposing a flat rate of 27.5% on total enrolled debt rather than adhering to state law which caps fees at 30% based on negotiated savings. It further accuses Palisade of misleading clients about how payments would be applied toward their debt settlement plans.
An example cited involves a consumer who joined Palisade's program expecting debt reduction within six months but received no relief after eleven months despite making regular payments.
Additionally, it is alleged that Palisade operated without necessary registration with Rhode Island’s Department of Business Regulation and failed to meet statutory consumer safeguards. The Office plans to share its complaint with the state's Disciplinary Board concerning unauthorized legal practice.
In 2021, legislation supported by Attorney General Neronha reinstated his office's authority under DTPA protections for consumers. Recent actions under DTPA include lawsuits against various entities such as a residential solar company and real estate firms accused of unfair practices.
Special Assistant Attorney General Jordan Mickman and Chief Consumer Investigator Julissa Ulloa Nin are handling this case on behalf of the Office of the Attorney General.