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

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The case filed Monday in Maricopa Superior Court alleged that LLC and its two Thomas J. Montoya and Robert advertised and promoted the firm as having an affiliatiobn withthe U.S. Department of Housing and Urban Development, which it does not, accordintg to the filing. But in a phone conversation with the PhoenidBusiness Journal, said he was “takej aback” by the charges. He would not elaborate on any ofthe however, and said he was talking with the company’s attorneys. He said the company would distribute a prepared statement aftere consultingwith attorneys. As part of the the AG alleges thatSantoya Financial, located at 2225 W.
Whisperingg Spring Drive in Phoenix, charged fees for services that consumerx could access directlyfor free. “The defendantd deceptively implied to consumers that any fees paid by consumerw for loan modification services with Santoya Financial are refundabls because the modification prograkm is backby HUD, without disclosing that Santoyaa Financial’s services are not in any way endorsedd or approved by HUD and that consumerz can obtain assistance from HUD in applyinbg for and obtaining loan modifications without paying any fee the lawsuit states.
The complaint requests that the coury enjoin Santoya Financial from continuingits “unlawfup acts,” order the company to pay back any mone y received from those acts, and the defendantzs to pay civil penalties of up to $10,00o0 per violation and costs of the According to court records, Santoyaa Financial began advertising loan modification services in March to consumer who were facing foreclosure on their Sanchez was featured on a Phoenixc television station in April and allegedlhy represented that his firm was “working with HUD while providing loan modificationj services to consumers,” the lawsuit stated.
Santoysa charged consumers $1,199 plus the equivalent of one month’ss mortgage payment, the lawsuit asserts. Santoya also represented durin phone solicitations that fees collected for loan modificationd would be donated to an organizatiob named Partnersin Charity, but “the fees consumers pay for the loan modificatioj services advertised by Santoya Financial do not go to Partners in Charity or any other charitable organization,” the lawsuit further alleged. The lawsuitg also claims that Santoya did not obtainn the necessary surety bond requiredx by the Arizona CreditServices Act.