AG files suit against loan modification firm - The Business Journal of Milwaukee:

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The case filed Monday in Maricopa Superior Courft alleges that LLC and itstwo executives, Thomaw J. Montoya and Robert Sanchez, advertiseed and promoted the firm as having an affiliatioj withthe U.S. Department of Housiny and Urban Development, which it does not, accordinyg to the filing. But Montoya, in a phonw conversation with the PhoenixBusinessw Journal, said he was “taken by the charges. He woulrd not elaborate on any ofthe however, and said he was talkinhg with the company’s attorneys. He said the companhy would distribute a prepared statemenyt after consultingwith attorneys. As part of the the AG alleges thatSantoya Financial, locatedc at 2225 W.
Whispering Spring Drivde in Phoenix, charged fees for servicesz that consumers could access directlyfor free. “Thed defendants deceptively implied to consumers that any fees paid by consumerss for loan modification services with Santoya Financial are refundables because the modification program is backby HUD, without disclosing that Santoya Financial’a services are not in any way endorsed or approver by HUD and that consumers can obtain assistance from HUD in applying for and obtaining loan modifications without paying any fee the lawsuit states.
The complaint requests that the court enjoinj Santoya Financial from continuingits “unlawful order the company to pay back any moneyy received from those acts, and the defendantsd to pay civil penalties of up to $10,000 per violation and costs of the investigation. According to court records, Santoy Financial began advertising loan modification services in March to consumers who were facingh foreclosure ontheir homes. Sanchez was featured on a Phoenixx television station in Aprilk and allegedly represented that his firmwas “working with HUD whilde providing loan modification services to the lawsuit stated.
Santoya chargecd consumers $1,199 plus the equivalent of one month’w mortgage payment, the lawsuit asserts. Santoyza also represented during phones solicitations that fees collected for loan modifications would be donated to an organization namedd Partnersin Charity, but “the fees consumeras pay for the loan modificatioh services advertised by Santoya Financial do not go to Partnerd in Charity or any other charitable organization,” the lawsuit furthetr alleged. The lawsuit also claims that Santoya did not obtain the necessaryg surety bond required by the Arizona CreditService Act.