(a)  Any violation of § 5-79-1 — § 5-79-9 is considered to be a violation of § 6-13.1-2, and all remedies of § 6-13.1-5.2 are available for such an action. A private cause of action under § 6-13.1-5.2 by a foreclosed homeowner is in the public interest. An owner may bring an action against a foreclosure consultant for any violation of § 5-79-1 — § 5-79-9. Any judgment against the mortgage foreclosure consultant shall include actual damages, reasonable attorney’s fees and costs, and appropriate equitable relief.

contract signature

Need help reviewing a real estate contract?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In Rhode Island General Laws 5-79-6

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Foreclosure consultant: means any person who, directly or indirectly, makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service that the person in any manner represents will in any manner do any of the following:

    (i)  Stop or postpone the foreclosure sale;

    (ii)  Obtain any forbearance from any beneficiary or mortgagee;

    (iii)  Assist the owner to exercise the right of redemption provided in § 34-23-2;

    (iv)  Obtain any extension of the period within which the owner may reinstate the owner's obligation;

    (v)  Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;

    (vi)  Assist the owner in foreclosure or loan default to obtain a loan or advance of funds;

    (vii)  Avoid or ameliorate the impairment of the owner's credit resulting from the recording of a notice of default or the conduct of a foreclosure sale; or

    (viii)  Save the owner's residence from foreclosure. See Rhode Island General Laws 5-79-1

  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Owner: means the record owner of the residential real property in foreclosure at the time the notice of pendency was recorded, or the summons and complaint served. See Rhode Island General Laws 5-79-1

(b)  The court may award punitive damages up to one and one half (1½) times the compensation charged by the foreclosure consultant if the court finds that the foreclosure consultant violated the provisions of § 5-79-4(1), (2), or (4), and the foreclosure consultant’s conduct was in bad faith.

(c)  The rights and remedies provided in subsection (a) are cumulative to, and not a limitation of, any other rights and remedies provided by law.

(d)  Any action brought pursuant to this section must be commenced within four (4) years from the date of the alleged violation.

(e)  Notwithstanding any other provision of this section, no action may be brought on the basis of a violation of § 5-79-1 — § 5-79-9, except by an owner against whom the violation was committed or by the department of attorney general.

History of Section.
P.L. 2006, ch. 242, § 1; P.L. 2006, ch. 287, § 1; P.L. 2007, ch. 340, § 3.