$325 Million Amerquest Settlement Payout Might Average $812.15 Per Person

If you got a mortgage through Ameriquest from 1999-2005, you may be eligible for a $325 million settlement Ameriquest reached with 49 states over their shady lending practices, which included failing to disclose that the loans had adjustable rates, failing to disclose the terms of the loan, refinancing homeowners into inappropriate loans, inflating home appraisals, and charging excessive fees such as prepayment penalties and loan origination fees. Ameriquest did not admit wrongdoing.

Customers who accept the restitution forfeit their right to sue Ameriquest unless their home goes into foreclosure, in which case… sue away. From the San Francisco Chronicle:

While the average restitution payment is expected to be $812.15, the amount could be larger depending on how many people participate in the settlement. Consumers who accept the restitution give up their right to sue Ameriquest, unless their home goes into foreclosure, in which case they can still sue.

The settlement also involves customers of two Ameriquest-related companies: Town and County Credit Corp. and AMC Mortgage Services Inc., formerly known as Bedford Home Loans.

Glad tidings for clients soaked by Ameriquest [SFC]

PREVIOUSLY: Ameriquest Employees Confess: Lying to Customers, Forging Papers

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  1. dbeahn says:

    I’m sorry, but if you pay out 325 MILLION, you’re admitting to wrongdoing. It’s not like they’re saying “Hey, we’d like to make a donation, of our own free will, to these people for no real reason…”

  2. beyond says:

    @dbeahn: So true. None of these big companies EVER admit wrongdoing. Why does the law let them do this? You think $800 is going to cover the damages to the consumer that was ripped off for thousands? Puhlease.

  3. beavis88 says:

    @Beyond

    Why does the law let them do this? Because business interests write the laws (sometimes literally so these days…)