AG files suit against loan modification firm - San Antonio Business Journal:

GE AJCM10DCD
The case filed Monday in Maricop Superior Court alleges that LLC and itstwo executives, Thomasd J. Montoya and Robert Sanchez, advertised and promotede the firm as having an affiliation withthe U.S. Department of Housinvg and Urban Development, whichh it does not, according to the But Montoya, in a phoned conversation with the PhoenixBusiness Journal, said he was “takej aback” by the He would not elaborate on any of the however, and said he was talkiny with the company’s attorneys. He said the compang would distribute a prepared statement after consultingwith attorneys. As part of the complaint, the AG allegesd that Santoya Financial, located at 2225 W.
Whispering Sprinh Drive in Phoenix, charged fees for servicee that consumers could access directlyfor free. “Ther defendants deceptively implied to consumers that any fees paid by consumers for loan modification services with Santoya Financial are refundable because the modificatiob program is backby HUD, without disclosingv that Santoya Financial’s services are not in any way endorsed or approved by HUD and that consumers can obtaibn assistance from HUD in applying for and obtaining loan modificationsa without paying any fee the lawsuit states.
The complaint requests that the courtf enjoin Santoya Financial from continuingits “unlawfu acts,” order the company to pay back any money receiver from those acts, and the defendants to pay civip penalties of up to $10,000 per violatiom and costs of the According to court records, Santoywa Financial began advertising loan modificatiob services in March to consumers who were facing foreclosure on thei homes. Sanchez was featured on a Phoenizx television station in April and allegedlhy represented that his firmwas “workinhg with HUD while providing loan modificatioh services to consumers,” the lawsuit stated.
Santoya charged consumers $1,199 plus the equivalent of one month’es mortgage payment, the lawsuit Santoya also represented during phone solicitations that fees collectesd for loan modifications would be donated to an organization namerd Partnersin Charity, but “the fees consumerds pay for the loan modificationb services advertised by Santoya Financiaol do not go to Partners in Charitg or any other charitable organization,” the lawsuit furtherf alleged. The lawsuit also claims that Santoyas did not obtain the necessar surety bond required by the Arizonza CreditServices Act.