Los Angeles, CA: Ameriquest has agreed to settle 29 outstanding class actions that allege the group of subprime lenders participated in predatory lending practices. The proposed settlement fund is $22 million and would be used to repay borrows who filed a claim with the class actions. The settlement could affect as many as 712,000 plaintiffs.
According to reports, the agreement covers loans made by Argent Mortgage Co, AMC Mortgage Services Inc, Bedford Home Loans Inc, Town & Country Credit Corp, Olympus Mortgage Co, and Ameriquest Mortgage that date back to December 14, 2001.
The claims have been sorted into five categories, including interest rates that were higher than promised by nine-tenths of a percentage point or more, loans with variable rates when fixed rates were promised, and hefty upfront charges.
Plaintiffs have until February 22 to opt out of the settlement if they wish to pursue their own lawsuits. To receive settlement funds, a claim form must be completed and submitted no later than March 9. By doing nothing, plaintiffs would not receive any money and give up all rights to pursue damages.
People who have already accepted prior individual and class action settlements are excluded from this settlement.
