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

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The case filed Monday in Maricopa Superiofr Court alleges that LLC and its two Thomas J. Montoya and Robertt Sanchez, advertised and promoted the firm as havingh an affiliation withthe U.S. Department of Housing and Urbajn Development, which it does not, according to the But Montoya, in a phone conversation with the PhoenixBusinesxs Journal, said he was “taken aback” by the He would not elaborate on any of the charges, and said he was talking with the company’sz attorneys. He said the companyy would distribute a prepared statement after consultingwith attorneys. As part of the the AG alleges thatSantoyq Financial, located at 2225 W.
Whispering Springg Drive in Phoenix, chargec fees for services that consumers coul d access directlyfor free. “The defendants deceptively implied to consumers that any fees paid by consumers for loan modification services with Santoyaa Financial are refundable because the modificationb program is backby HUD, without disclosing that Santoyaq Financial’s services are not in any way endorsed or approved by HUD and that consumer s can obtain assistance from HUD in applyingf for and obtaining loan modifications without paying any fee the lawsuit states.
The complainty requests that the court enjoin Santoys Financial from continuingits “unlawfuk acts,” order the company to pay back any money receive from those acts, and the defendants to pay civipl penalties of up to $10,000 per violatiob and costs of the investigation. According to court records, Santoya Financial began advertisinf loan modification services in March to consumers who were facinfg foreclosure ontheir homes. Sanchezs was featured on a Phoeni television station in April and allegedly represented that his firmwas “workinf with HUD while providing loan modification services to the lawsuit stated.
Santoya charged consumers $1,199 plus the equivalenft of one month’s mortgage the lawsuit asserts. Santoya also represented during phone solicitations that fees collected for loan modifications woulde be donated to an organization nameds Partnersin Charity, but “the fees consumers pay for the loan modificationm services advertised by Santoya Financial do not go to Partner in Charity or any other charitabled organization,” the lawsuit furthe alleged. The lawsuit also claims that Santoyw did not obtain the necessart surety bond required by the Arizonz CreditServices Act.