Ameriquest at Tentative Settlement in Fraud Suit

LOS ANGELES (AP) - Home loan lender Ameriquest Mortgage reportedly will pay as much as $50 million to settle a class-action fraud case.

The Los Angeles Times reports Ameriquest has been dogged by consumer complaints and lawsuits in about 20 states that accuse the company of fraud and falsification of documents.

The tentative settlement stems from a lawsuit that accuses Ameriquest employees of surprising borrowers with fees and interest rates that often were significantly higher than quotes in good-faith estimates of loan costs.

Ameriquest would pay at least $15 million and no more than $50 million. A court hearing is scheduled June 24 for final approval.

The settlement would give refunds to some Maryland borrowers who received loans from 1996 through February 2004, and customers in Texas, Alabama and Alaska who took out loans from 1998 through February 2004.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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