Arizona AG Tags Upfront Fee Loan Mod Firm With Civil Suit, Alleging Violations Of State Consumer Fraud, Consumer Services Acts

From the Office of the Arizona Attorney General:

• Attorney General Terry Goddard has filed a lawsuit against a Phoenix-based mortgage loan modification company, Santoya Financial Company, LLC and its owners, Thomas Montoya and Robert Sanchez, for engaging in deceptive practices.

The lawsuit alleges that Santoya’s actions violated the Arizona Consumer Fraud Act(1) and the Arizona Credit Services Act,(2) by:

• Falsely representing the company as being endorsed by HUD,
• Falsely representing that it and an allied company, Partners in Charity, were approved by HUD to provided foreclosure avoidance counseling to consumers,
• Failing to disclose the limited nature of its services, which was simply collecting and forwarding clients’ information to independent entities for whom Santoya had no responsibility and who had not complied with Arizona law regulating loan modifications in this state,
• Failing to provide consumers with information statements and contracts required by law,
• Charging clients upfront fees [upfront fee of $1,199 plus the equivalent of one month’s mortgage payment, according to the lawsuit] without having obtained a surety bond.

The Arizona AG is seeking full restitution to the screwed over homeowners, civil penalties of up to $10,000 per violation of law, and reimbursement of investigative and litigation costs.

For the Arizona AG press release, see Goddard Sues Mortgage Loan Modification Company for Deceptive Practices.

For the lawsuit, see State of Arizona v. Santoya Financial Company, LLC.

(1) Title 44: Sections 44-1521 through 44-1534, Arizona Revised Statutes.

(2) Title 44: Sections 44-1701 through 44-1712, Arizona Revised Statutes.