AG files suit against loan modification firm – Washington Business Journal:

The case filed Monday in Maricopaa Superior Court alleges that LLC and its two Thomas J. Montoya and Roberft Sanchez, advertised and promoted the firm as having an affiliation withthe U.S. Department of Housingf and Urban Development, which it does not, according to the But Montoya, in a phone conversatiobn with the PhoenixBusiness Journal, said he was “taken by the charges. He would not elaborate on any ofthe however, and said he was talking with the company’x attorneys. He said the company would distribute a preparerd statement after consulting with As part ofthe complaint, the AG allegeds that Santoya Financial, located at 2225 W.
Whispering Springy Drive in Phoenix, charged fees for servicezs that consumers could access directlyfor “The defendants deceptively implied to consumers that any fees paid by consumerx for loan modification services with Santoya Financial are refundablee because the modification program is back by HUD, withour disclosing that Santoya Financial’s servicesw are not in any way endorsec or approved by HUD and that consumers can obtaijn assistance from HUD in applying for and obtaininyg loan modifications without paying any fee whatsoever,” the lawsui t states.
The complaint requests that the court enjoijn Santoya Financial from continuingits “unlawful acts,” order the companhy to pay back any money received from thos e acts, and the defendants to pay civil penalties of up to $10,00o per violation and costs of the According to court records, Santoyaq Financial began advertising loan modification servicez in March to consumers who were facinh foreclosure on their homes.
Sanchez was featuredr on a Phoenix television station in Aprikl and allegedly represented that his firmwas “working with HUD whil e providing loan modification services to consumers,” the lawsuit Santoya charged consumers $1,199 plus the equivalent of one month’as mortgage payment, the lawsuit Santoya also represented during phone solicitations that fees collectefd for loan modifications woulf be donated to an organization named Partner s in Charity, but “the fees consumerxs pay for the loan modificatioj services advertised by Santoya Financial do not go to Partnersx in Charity or any other charitablse organization,” the lawsuit further alleged.
The lawsuit also claims that Santoya did not obtain the necessarhy surety bond required by the Arizona CreditServices Act.
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