“I am pleased that Kansas consumers will finally begin to receive restitution from the Ameriquest settlement,” Morrison said. “It is important that we continue to protect consumers and hold companies accountable for deceptive business practices.”
The agreement stems from a multi-state effort to resolve complaints that Ameriquest and its affiliated companies allegedly engaged in deceptive mortgage lending practices, including providing borrowers inaccurate information about interest rates, discount points and other loan terms; and persuading borrowers to refinance, even when refinancing didn’t offer any real advantage to the borrowers.
Some borrowers also complained that Ameriquest pressured them to close loans on terms that were different from those originally proposed, and failed to complete funding of loans on time. As part of the nationwide settlement, a $295 million settlement fund is being established to provide restitution payments to certain Ameriquest borrowers. The funds will be distributed based on the amount of business the company did in each state. Consumers have the option to accept the settlement offer or seek resolution of their concerns themselves.
Nearly $1.7 million of the total fund will be distributed to approximately 2,500 Kansas consumers who received mortgage loans from Ameriquest between January 1, 1999 and December 31, 2005. Eligible consumers are scheduled to receive a notice letter in April identifying the minimum dollar restitution payment they may receive which is expected to range between $580 and $2,600.
More information, including a list of frequently asked questions, can be found at www.ameriquestmultistatesettlement.com. A toll-free telephone number has also been established for consumers at 1-800-420-5875.