Ameriquest Settles 29 Class-Action Lawsuits
Los Angeles Times
January 27, 2010
Reckard, E. Scott
Ameriquest, once the nation's largest subprime lender, has agreed to settle 29 class-action lawsuits alleging predatory practices. The group has agreed to pay $22 million to impacted borrowers and their lawyers, a decision that could affect some 712,000 consumers. Parties are not permitted to discuss the proposal, but terms were specified in letters mailed to borrowers as well as online. Loans from as far back as Dec. 14, 2001, are covered in the agreement; and the claims are sorted into five categories, including steep upfront costs. Borrowers who accepted previous individual and class-action settlements are excluded. After legal fees and administrative costs, the class-action settlement grants approximately $20 to each potential class member. Borrowers wishing to pursue their own lawsuits have until Feb. 22 to opt out of the settlement, while those wishing to receive settlement funds must fill out and submit a claim no later than March 9. Robert Green, a class-action lawyer in San Francisco, said only about 20 percent of claim forms are typically filled out, which would bring the individual payments up to $100 per claim if that statistic were to hold true in this case.
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