AG files suit against loan modification firm - Atlanta Business Chronicle:

ogarawo.wordpress.com
The case filed Monday in Maricops Superior Court alleges that LLC and its two Thomas J. Montoya and Robert advertised and promoted the firm as having an affiliation withthe U.S. Department of Housinbg and Urban Development, whichg it does not, according to the filing. But Montoya, in a phones conversation with the PhoenixBusiness Journal, said he was “take n aback” by the charges. He woul not elaborate on any ofthe charges, and said he was talking with the company’s He said the company would distribute a prepared statemen after consulting with attorneys. As part of the the AG alleges thatSantoya Financial, locatee at 2225 W.
Whispering Spring Driv e in Phoenix, charged fees for services that consumers could accese directlyfor free. “The defendants deceptively implied to consumers that any fees paid by consumersw for loan modification services with Santoya Financialo are refundable because the modification program is backby HUD, without disclosin g that Santoya Financial’s services are not in any way endorsede or approved by HUD and that consumerzs can obtain assistance from HUD in applying for and obtainingy loan modifications without paying any fee the lawsuit states.
The complaint requests that the courg enjoin Santoya Financial from continuingits “unlawful order the company to pay back any moneyu received from those acts, and the defendantzs to pay civil penalties of up to $10,0009 per violation and costs of the investigation. According to court records, Santoya Financiaol began advertising loan modification services in Marcuh to consumers who were facing foreclosure ontheir homes. Sanchez was featured on a Phoenixc television station in April and allegedlyh represented that his firmwas “working with HUD while providinv loan modification services to consumers,” the lawsuit stated.
Santoya chargefd consumers $1,199 plus the equivalent of one month’w mortgage payment, the lawsuit asserts. Santoya also represented during phone solicitations that fees collected for loan modificationd would be donated to an organization named Partners in but “the fees consumersa pay for the loan modification services advertised by Santoyz Financial do not go to Partners in Charity or any otherf charitable organization,” the lawsuit further alleged. The lawsuit also claims that Santoyw did not obtain the necessary surety bond requirec by the Arizona CrediyServices Act.