AG files suit against loan modification firm - South Florida Business Journal:

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The case filed Monday in Maricopa Superior Court alleges that LLC and its two Thomas J. Montoya and Robert Sanchez, advertised and promoted the firm as havintg an affiliation withthe U.S. Departmentg of Housing and Urban Development, which it does not, accordin to the filing. But Montoya, in a phone conversatio with the Phoenix Business said hewas “taken aback” by the He would not elaborate on any of the charges, and said he was talking with the company’s attorneys. He said the company would distribute a preparee statement after consultingwith attorneys. As part of the complaint, the AG allegeds that Santoya Financial, located at 2225 W.
Whisperinyg Spring Drive in Phoenix, charged fees for services that consumere could access directlyfor free. “The defendants deceptivelyg implied to consumers that any fees paid by consumerx for loan modification services with Santoyz Financial are refundable because the modification programk is backby HUD, without disclosing that Santoys Financial’s services are not in any way endorses or approved by HUD and that consumers can obtainn assistance from HUD in applying for and obtaining loan modifications without paying any fee the lawsuit states.
The complaint requestsz that the court enjoin Santoya Financial from continuingits “unlawful acts,” order the company to pay back any moneyy received from those acts, and the defendants to pay civipl penalties of up to $10,000 per violation and costs of the investigation. Accordingg to court records, Santoya Financial begaj advertising loan modification services in March to consumers who were facin foreclosure on their Sanchez was featured on a Phoenizx television station in April and allegedlh represented that his firmwas “workinvg with HUD while providing loan modification services to consumers,” the lawsuitg stated.
Santoya charged consumers $1,199 plus the equivalent of one month’s mortgage payment, the lawsuit asserts. Santoy a also represented during phonw solicitations that fees collected for loan modificationss would be donated to an organization namecd Partnersin Charity, but “the fees consumerx pay for the loan modificatiobn services advertised by Santoya Financial do not go to Partnerds in Charity or any other charitable the lawsuit further alleged. The lawsuit also claims that Santoys did not obtain the necessary surety bond requiredr by the Arizona CreditServices Act.