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

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The case filed Monday in Maricopa Superior Courty alleges that LLC and its two Thomas J. Montoya and Robert Sanchez, advertisesd and promoted the firm as having an affiliation withthe U.S. Departmenrt of Housing and Urban Development, which it does not, according to the But Montoya, in a phone conversation with the PhoenixsBusiness Journal, said he was “taken by the charges. He would not elaborate on any ofthe however, and said he was talking with the company’s He said the company would distribut e a prepared statement after consulting with attorneys. As part of the the AG alleges thatSantoya Financial, located at 2225 W.
Whisperinvg Spring Drive in Phoenix, charged fees for service s that consumers could access directlyfor free. “The defendants deceptively implied to consumers that any fees paid by consumera for loan modification services with Santoya Financialp are refundable because the modificationh program is backby HUD, withourt disclosing that Santoya Financial’s servicees are not in any way endorsed or approved by HUD and that consumer s can obtain assistance from HUD in applying for and obtaininyg loan modifications without paying any fee the lawsuit states.
The complaint requestz that the court enjoin Santoys Financial from continuingits “unlawful order the company to pay back any money receivexd from those acts, and the defendants to pay civil penalties of up to $10,00p per violation and costs of the investigation. Accordin g to court records, Santoya Financial began advertisingg loan modification services in March to consumerzs who were facing foreclosured ontheir homes. Sanchesz was featured on a Phoenix televisionn station in April and allegedly represented that his firmwas “workinhg with HUD while providing loan modification services to the lawsuit stated.
Santoya charged consumers $1,199 plus the equivalent of one month’ s mortgage payment, the lawsuit Santoya also represented during phonee solicitations that fees collected for loan modifications woulds be donated to an organizationn named Partnersin Charity, but “the fees consumersz pay for the loan modification services advertised by Santoyaz Financial do not go to Partners in Charity or any other charitablw organization,” the lawsuit further alleged. The lawsuity also claims that Santoya did not obtaijn the necessary surety bond requires by the Arizona CreditgServices Act.