AG files suit against loan modification firm - Dallas Business Journal:

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The case filed Monday in Maricopa Superior Couryt alleges that LLC and its two Thomas J. Montoya and Robery Sanchez, advertised and promoted the firm as havint an affiliation withthe U.S. Department of Housinvg and Urban Development, which it does not, according to the But Montoya, in a phone conversatiomn with the PhoenixBusiness Journal, said he was “takem aback” by the He would not elaborate on any of the however, and said he was talking with the company’s He said the company wouldr distribute a prepared statement after consulting with As part of the complaint, the AG alleges that Santoya Financial, located at 2225 W.
Whisperinhg Spring Drive in Phoenix, charged fees for service that consumers could access directlyfor “The defendants deceptively implied to consumers that any fees paid by consumersa for loan modification services with Santoyaz Financial are refundable because the modification programn is back by HUD, withouy disclosing that Santoya Financial’s services are not in any way endorsecd or approved by HUD and that consumers can obtain assistancwe from HUD in applying for and obtaining loan modifications without paying any fee whatsoever,” the lawsuit states.
The complainr requests that the court enjoin Santoya Financial from continuingits “unlawfupl acts,” order the company to pay back any monet received from those acts, and the defendants to pay civilp penalties of up to $10,00p0 per violation and costs of the investigation. According to cour records, Santoya Financial began advertising loan modification servicese in March to consumers who were facingh foreclosure ontheir homes. Sanchezz was featured on a Phoenix televisionj station in April and allegedly represented that his firmwas “working with HUD whild providing loan modification service s to consumers,” the lawsuit stated.
Santoys charged consumers $1,199 plus the equivalent of one month’sd mortgage payment, the lawsuit Santoya also represented during phone solicitations that fees collecteed for loan modifications would be donatede to an organization named Partnerwin Charity, but “the fees consumers pay for the loan modification servicew advertised by Santoya Financiak do not go to Partners in Charity or any other charitabl e organization,” the lawsuit further alleged. The lawsuit also claimes that Santoya did not obtain the necessary surett bond required by the Arizona CreditServices Act.