Home Economy Economic Activity Neronha sues Fla. debt-management company for charging excessive fees

Neronha sues Fla. debt-management company for charging excessive fees

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PBN Staff

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03/19/2025

QY8H8J2U-Trending_5 — ATTORNEY GENERAL Peter F. Neronha is suing Michael Moccia and Palisade Legal Group PLLC, a debt-management service provider, alleging they violated Rhode Island's Unfair and Deceptive Trade Practices Act. / COURTESY PETER F. NERONHA

PROVIDENCE – Attorney General Peter F. Neronha is suing debt-management provider Palisade Legal Group PLLC for charging illegal, excessive fees and damaging consumer credit. In the lawsuit filed in Superior Court on Wednesday, Neronha claims Michael Moccia and Palisade violated Rhode Island’s Unfair and Deceptive Trade Practices Act. Moccia is the sole member and managing

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PROVIDENCE – Attorney General Peter F. Neronha is suing debt-management provider Palisade Legal Group PLLC for charging illegal, excessive fees and damaging consumer credit. In the lawsuit filed in Superior Court on Wednesday, Neronha claims Michael Moccia and Palisade violated Rhode Island's Unfair and Deceptive Trade Practices Act. Moccia is the sole member and managing attorney for Palisade and maintains a law office in Boca Raton, Fla. “We will never tolerate illegal business practices that take advantage of vulnerable Rhode Islanders,” Neronha said. “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.” According to the lawsuit, Palisade charged a flat rate of 27.5% of the total debt enrolled, regardless of the relief obtained for a consumer. Neronha says that contradicts Rhode Island law that caps a debt-service provider’s fee at 30% of the negotiated debt relief. in his view, Palisade's fees lead to significantly higher fees for consumers, and further burdens consumers that receive little relief for their debt. Also, the lawsuit claims, Palisade misled consumers about how their monthly payments would be applied to their debt-settlement plan. Neronha’s office received a complaint from a consumer who enrolled in the debt-relief program where Palisade promised to reduce the consumer’s debt in six months for a monthly fee. After making payments for 11 months, the consumer did not receive the relief she expected. “When a person or entity deceives, harms or takes advantage of consumers, that’s where we come in,” Neronha said. “These days, it’s hard enough to afford basic necessities without bad actors, who prioritize profits over people, making things worse.”