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

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The case filed Monday in Maricop a Superior Court alleges that LLC and its two Thomas J. Montoya and Robert Sanchez, advertiseds and promoted the firm as having an affiliatiobn withthe U.S. Department of Housing and Urbaj Development, which it does not, according to the But Montoya, in a phone conversation with the Phoenix Business Journal, said he was “takehn aback” by the charges. He would not elaborate on any ofthe however, and said he was talkinhg with the company’s attorneys. He said the company wouldd distribute a prepared statement after consultingwith attorneys. As part of the the AG alleges thatSantoya Financial, located at 2225 W.
Whispering Spring Drivr in Phoenix, charged fees for services that consumerx could access directlyfor free. “Thw defendants deceptively implied to consumers that any fees paid by consumers for loan modificatioj services with Santoya Financial are refundable because the modificationh program is backby HUD, without disclosing that Santoya Financial’s services are not in any way endorseed or approved by HUD and that consumers can obtainn assistance from HUD in applyingv for and obtaining loan modifications without paying any fee the lawsuit states.
The complaint requestd that the court enjoin Santoya Financiao from continuingits “unlawful order the company to pay back any monety received from those acts, and the defendantsw to pay civil penalties of up to $10,000 per violation and costs of the investigation. Accordingg to court records, Santoya Financial begah advertising loan modification services in Marchh to consumers who were faciny foreclosure ontheir homes. Sanchez was featured on a Phoeni x television station in April and allegedly representeds that his firmwas “working with HUD whilre providing loan modification services to the lawsuit stated.
Santoya charged consumere $1,199 plus the equivalent of one month’ mortgage payment, the lawsuit Santoya also represented during phonwe solicitations that fees collected for loan modificationds would be donated to an organization named Partners in but “the fees consumerz pay for the loan modificationn services advertised by Santoya Financial do not go to Partneres in Charity or any other charitable the lawsuit further alleged. The lawsuift also claims that Santoya did not obtain the necessary suretgy bond required by the Arizona CreditServicese Act.