The Department of Commerce and Consumer Affairs announced this week that 2,264 Hawai‘i consumers are eligible for $1.6 million in restitution for Ameriquest Mortgage Co. and its related companies as part of a $325 million national settlement of a predatory
The Department of Commerce and Consumer Affairs announced this week that 2,264 Hawai‘i consumers are eligible for $1.6 million in restitution for Ameriquest Mortgage Co. and its related companies as part of a $325 million national settlement of a predatory lending lawsuit against the company, states a department press release.
The settlement resolves allegations that Ameriquest and its affiliates misrepresented and did not adequately disclose the terms of home loans such as whether a loan carried a fixed or an adjustable rate, charged excessive loan origination fees and prepayment penalties, refinanced borrowers into improper or inappropriate loans, and improperly inflated appraisals used to qualify borrowers for loans, according to the release.
The department began sending letters and claim forms to eligible Hawai’i consumers during the week of July 9. To participate in the settlement and receive restitution, consumers must mail completed and signed forms by Sept. 10 to the Ameriquest Settlement Administrator at P.O. Box 1855, Faribault, MN 55021-7110.
“The forms mailed to each consumer will indicate the minimum payment the consumer can expect to receive,” Stephen Levins, executive director for the department’s Office of Consumer Protection, said in the release. He noted that the exact amount could be larger based on how many eligible Hawai‘i consumers participate.
Consumers who opt to receive the restitution payments relinquish their right to file lawsuits against Ameriquest related to the loans covered by the settlement. However, consumers who participate in the settlement do not give up any claim they may otherwise raise if their home goes into foreclosure.
Under the settlement, more than 481,000 borrowers who were customers of Ameriquest Mortgage Company, Town and Country Credit Corporation and AMC Mortgage Services, Inc. (formerly known as Bedford Home Loans) between Jan. 1, 1999, and Dec. 31, 2005, are eligible to receive the restitution payments, which are expected to total more than $300 million nationwide.
For more information, visit www.ameriquestmultistatessettlement.com or contact the settlement administrator at (800) 420-5875.
