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Ameriquest has settled on a 3 year investigation on predatory lending practices for 350 million dollars with 50 million going to California customers. They have agreed to change their internal practices and not use high pressure sales tactics on its customers.

The judgment closes a three-year investigation into Ameriquest’s lending practices, which law enforcement officials nationwide called predatory and improper. It was filed simultaneously with judgments in 48 other states and finalizes an agreement reached in January between Ameriquest’s parent company, AAC Capital Holdings Corp., and a committee of law enforcement officials and financial regulators.

“It’s a good example of what can happen when law enforcement and regulatory agencies throughout the country work together toward a common goal,” said John Wilson, the deputy district attorney in charge of the consumer and environmental unit at the San Mateo County district attorney’s office.

Ameriquest sells refinancing loans to borrowers, frequently with low credit scores, who want to consolidate credit card and other debt into their mortgages. A complaint resulting from a three-year investigation alleges that Ameriquest employees used high-pressure sales tactics to deceive consumers. Among the alleged tactics: not adequately disclosing payment penalties, improperly influencing and accepting inflated appraisals, and encouraging borrowers to fabricate their income or employment information on their loan applications.

Ameriquest, based in Orange, admitted no wrongdoing in the settlement. But it did agree to pay $295 million in restitution to customers with claims against the company and to implement new policies to protect consumers, including providing the same interest rates and discounts to customers in similar financial situations and making its appraisal process more independent.

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4. NY Attorney General Settles With 2 Title Insurance Companies Over Kickbacks
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