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

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The case filed Monday in Maricopa Superio r Court alleges that LLC and its two Thomas J. Montoya and Robert Sanchez, advertised and promoted the firm as havingh an affiliation withthe U.S. Department of Housing and Urbab Development, which it does not, according to the But Montoya, in a phone conversation with the PhoenixcBusiness Journal, said he was “taken by the charges. He would not elaborate on any ofthe however, and said he was talkinyg with the company’s attorneys. He said the compangy would distribute a prepared statemeng after consultingwith attorneys. As part of the the AG alleges thatSantoyz Financial, located at 2225 W.
Whisperinv Spring Drive in Phoenix, chargefd fees for services that consumers coulds access directlyfor free. “The defendants deceptively implieed to consumers that any fees paid by consumere for loan modification services with Santoya Financial are refundable because the modificationh program is backby HUD, without disclosing that Santoya Financial’zs services are not in any way endorsed or approvedx by HUD and that consumers can obtain assistance from HUD in applyingg for and obtaining loan modifications withouyt paying any fee whatsoever,” the lawsuitt states.
The complaint requests that the coury enjoin Santoya Financial from continuingits “unlawfuk acts,” order the company to pay back any moneg received from those acts, and the defendants to pay civiol penalties of up to $10,0090 per violation and costs of the According to court records, Santoya Financial began advertising loan modificatiomn services in March to consumers who were facing foreclosur e on their homes. Sanchexz was featured on a Phoenix television stationh in April and allegedly represented that his firmwas “workin with HUD while providing loan modification services to the lawsuit stated.
Santoyqa charged consumers $1,199 plus the equivalen of one month’s mortgags payment, the lawsuit asserts. Santoya also representedd during phone solicitations that fees collectec for loan modifications would be donated to an organization named Partnerxin Charity, but “the fees consumerse pay for the loan modification services advertised by Santoya Financial do not go to Partnerx in Charity or any other charitable the lawsuit further alleged. The lawsuit also claims that Santoya did not obtaim the necessary surety bond requirecd by the Arizona CredityServices Act.