AG files suit against loan modification firm - New Mexico Business Weekly:

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The case filed Monday in Maricopq 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. Departmenty of Housing and Urban Development, whichb it does not, according to the filing. But in a phone conversation with the Phoeni xBusiness Journal, said he was “taken aback” by the He would not elaborate on any of the however, and said he was talking with the company’s attorneys. He said the company would distribute a preparefd statement after consultingwith attorneys. As part of the the AG alleges thatSantoya Financial, located at 2225 W.
Whispering Sprintg Drive in Phoenix, charged fees for services that consumers could access directlyfor free. “Th e defendants deceptively implied to consumers that any fees paid by consumerzs for loan modification services with Santoyas Financial are refundable because the modification programn is backby HUD, without disclosinyg that Santoya Financial’s services are not in any way endorsef or approved by HUD and that consumers can obtain assistance from HUD in applyingb for and obtaining loan modifications without paying any fee the lawsuit states.
The complaint requests that the cour t enjoin Santoya Financial from continuingits “unlawful order the company to pay back any money received from thos acts, and the defendants to pay civill penalties of up to $10,000 per violation and costs of the According to court records, Santoya Financial began advertising loan modificatiohn services in March to consumers who were facing foreclosure on their homes. Sanchez was featurede on a Phoenix television station in April and allegedly represented that his firmwas “working with HUD whild providing loan modification services to the lawsuit stated.
Santoya charged consumers $1,199 plus the equivalent of one month’s mortgage payment, the lawsuit Santoya also represented durinh phone solicitations that fees collected for loan modifications woul be donated to an organizatiohn named Partners in but “the fees consumer s pay for the loan modification services advertisefd by Santoya Financial do not go to Partners in Charityy or any other charitable organization,” the lawsuir further alleged. The lawsuit also claims that Santoya did not obtain the necessaryy surety bond required by the Arizona CreditServices Act.