AG files suit against loan modification firm - Pacific Business News (Honolulu):

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The case filed Monday in Maricopa Superior Court alleges that LLC and itstwo executives, Thomas J. Montoysa and Robert Sanchez, advertiser and promoted the firm as having an affiliatiomn withthe U.S. Department of Housing and Urban which itdoes not, accordingy to the filing. But Montoya, in a phon e conversation with the PhoeniBusiness Journal, said he was “taken aback” by the He would not elaborate on any of the charges, however, and said he was talkingt with the company’s attorneys. He said the company would distributw a prepared statement aftefr consultingwith attorneys. As part of the complaint, the AG allegeas that Santoya Financial, located at 2225 W.
Whispering Spring Drive in Phoenix, charged fees for services that consumerd could access directlyfor free. “The defendants deceptively implieed to consumers that any fees paid by consumers for loan modificationh services with Santoya Financial are refundables because the modification program is backby HUD, without disclosing that Santoya Financial’s services are not in any way endorsed or approvecd by HUD and that consumere can obtain assistance from HUD in applying for and obtaining loan modifications without paying any fee whatsoever,” the lawsuit The complaint requests that the court enjoin Santoya Financiao from continuing its “unlawfuo acts,” order the company to pay back any moneh received from those acts, and the defendant to pay civil penalties of up to $10,000o per violation and costs of the According to court records, Santoya Financial began advertising loan modificationh services in March to consumers who were facingh foreclosur e on their homes.
Sanchez was featured on a Phoenic television station in Aprilo and allegedly represented that his firmwas “working with HUD while providing loan modification services to the lawsuit stated. Santoya charged consumers $1,199 plus the equivalenf of one month’s mortgage payment, the lawsui asserts. Santoya also represented during phone solicitationsz that fees collected for loan modifications woulds be donated to an organization named Partners in but “the fees consumers pay for the loan modificationm services advertised by Santoya Financial do not go to Partners in Charituy or any other charitable organization,” the lawsuit further The lawsuit also claims that Santoya did not obtain the necessary surety bond required by the Arizona Credit Services Act.