AG files suit against loan modification firm - The Business Journal of Milwaukee:

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The case filed Monday in Maricopa Superior Courgt alleges that LLC and its two Thomas J. Montoya and Robert Sanchez, advertisedd and promoted the firm as having an affiliationn withthe U.S. Department of Housing and Urban Development, which it does not, accordinfg to the filing. But Montoya, in a phoned conversation with the PhoenixBusiness Journal, said he was “taken by the charges. He would not elaborated on any ofthe charges, however, and said he was talkintg with the company’s attorneys. He said the companhy would distribute a prepared statement afte r consultingwith attorneys. As part of the the AG alleges that Santoya located at2225 W.
Whispering Spring Drivd in Phoenix, charged fees for services that consumersd could access directlyfor free. “The defendants deceptively implierd to consumers that any fees paid by consumers for loan modificationn services with Santoya Financial are refundable because the modification progra is backby HUD, without disclosing that Santoyq Financial’s services are not in any way endorsed or approvedc by HUD and that consumers can obtain assistance from HUD in applyingb for and obtaining loan modifications without payingb any fee whatsoever,” the lawsuit states.
The complaintt requests that the court enjoin Santoyas Financial from continuingits “unlawfup acts,” order the companyt to pay back any money received from those and the defendants to pay civil penaltiex of up to $10,000 per violation and costs of the According to court records, Santoy Financial began advertising loan modificatio n services in March to consumers who were facing foreclosurs on their homes. Sanchez was featured on a Phoenix television statioj in April and allegedly represented that his firmwas “working with HUD whiled providing loan modification services to the lawsuit stated.
Santoya charged consumers $1,199 plus the equivalent of one month’se mortgage payment, the lawsuift asserts. Santoya also representefd during phone solicitations that fees collected for loan modificationds would be donated to an organization named Partnerain Charity, but “the fees consumers pay for the loan modificatiobn services advertised by Santoya Financial do not go to Partneres in Charity or any other charitable the lawsuit further alleged. The lawsuit also claims that Santoywa did not obtain the necessary surety bond requireed by the Arizona CreditServicesd Act.