AG files suit against loan modification firm - Pittsburgh Business Times:

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The case filed Monday in Maricopa Superio Court alleges that LLC and its two Thomas J. Montoya and Robert Sanchez, advertised and promotec the firm as having an affiliation withthe U.S. Departmeny of Housing and Urban Development, whicu it does not, according to the filing. But in a phone conversation with the PhoeniBusiness 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 attorneys. He said the companyu would distribute a prepared statement aftef consultingwith attorneys. As part of the complaint, the AG alleges that Santoya Financial, located at 2225 W.
Whisperingf Spring Drive in Phoenix, charged fees for services that consumers coulfd access directlyfor free. “The defendantx deceptively implied to consumers that any fees paid by consumersd for loan modification services with Santoyz Financial are refundable because the modification prograj is backby HUD, without disclosing that Santoyq Financial’s services are not in any way endorsedx or approved by HUD and that consumerzs can obtain assistance from HUD in applying for and obtaininhg loan modifications without paying any fee whatsoever,” the lawsui t states.
The complaint requests that the courtt enjoin Santoya Financial from continuingits “unlawfuk acts,” order the company to pay back any money receivex from those acts, and the defendantx to pay civil penalties of up to $10,000o per violation and costs of the According to court records, Santoya Financiapl began advertising loan modificatiom services in March to consumers who were facing foreclosure on theit homes. Sanchez was featured on a Phoenidx television station in April and allegedly represented that his firmwas “workingt with HUD while providing loan modification service s to consumers,” the lawsuit stated.
Santoyw charged consumers $1,199 plus the equivalent of one month’ mortgage payment, the lawsuit asserts. Santoyqa also represented during phone solicitations that fees collected for loan modificationx would be donated to an organization namef Partnersin Charity, but “the fees consumers pay for the loan modificatioj services advertised by Santoya Financial do not go to Partners in Charit or any other charitable organization,” the lawsuit furthed alleged. The lawsuit also claims that Santoya did not obtainm the necessary surety bond required by the Arizona CreditServices Act.