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: Legal Pad | LA$22M for 29 class action lawsuits, agrees Ameriquest
By Richard Binder
Ameriquest has agreed to settle 29 class-action lawsuits alleging predatory lending. The group of subprime lenders has pledged $22 million to repay aggrieved borrowers and their lawyers.
The agreement potentially affects 712,000 borrowers and covers loans as far back as Dec. 14, 2001. It sorts claims into five categories, including hefty upfront charges, interest rates that were higher than promised by nine-tenths of a percentage point or more, and loans with variable rates when fixed rates were promised. Payments will vary depending on the strengths and potential damages of each claim.
Ameriquest, based in Orange County, was once the nation's largest subprime lender before the mortgage meltdown hit.
Full post as published by Legal Pad | LA on January 27, 2010 (boomark / email).
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