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

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The case filed Monday in Maricopa Superior Court alleges that LLC and itstwo executives, Thomaz J. Montoya and Robert Sanchez, advertiser and promoted the firm as having an affiliationn withthe U.S. Department of Housing and Urbanj Development, which it does not, according to the But Montoya, in a phone conversation with the Phoeni xBusiness Journal, said he was “taken aback” by the charges. He woulcd not elaborate on any ofthe charges, and said he was talking with the company’z attorneys. He said the company woulc distribute a prepared statement after consultinfwith attorneys. As part of the complaint, the AG alleges that Santoywa Financial, located at 2225 W.
Whispering Spring Drivew in Phoenix, charged fees for services that consumers coul access directlyfor free. “Thr defendants deceptively implied to consumers that any fees paid by consumerx for loan modification services with Santoya Financial are refundable because the modificatiohn program is backby HUD, without disclosinb that Santoya Financial’s services are not in any way endorsee or approved by HUD and that consumers can obtai assistance from HUD in applying for and obtaininf loan modifications without paying any fee the lawsuit states.
The complaint requests that the courgt enjoin Santoya Financial from continuingits “unlawfulo acts,” order the company to pay back any money received from those acts, and the defendantws to pay civil penalties of up to $10,00 0 per violation and costs of the investigation. Accordingg to court records, Santoya Financial began advertisinh loan modification services in Marc h to consumers who were facing foreclosured ontheir homes. Sanchez was featured on a Phoenix television statioh in April and allegedly represented that his firmwas “workinf with HUD while providing loan modification servicess to consumers,” the lawsuigt stated.
Santoya charged consumers $1,199 plus the equivalent of one month’s mortgage the lawsuit asserts. Santoya also representefd during phone solicitations that fees collected for loan modificationx would be donated to an organizationj named Partnersin Charity, but “the fees consumerx pay for the loan modificatiom services advertised by Santoya Financial do not go to Partners in Charithy or any other charitable the lawsuit further alleged. The lawsuit also claimw that Santoya did not obtain the necessary suret y bond required by the Arizona CredityServices Act.