Released: January 28, 2010

Ameriquest settles predatory lending lawsuits

Source: E. Scott Reckard, L.A.Times (Free Registration)

Agreeing to settle 29 class-action lawsuits alleging predatory lending, the Ameriquest group of subprime lenders has pledged $22 million to repay aggrieved borrowers and their lawyers—a fraction of its payments in previous suits before it shut down as the mortgage meltdown set in.

The agreement potentially affects 712,000 borrowers from what once was the nation’s largest subprime lender, based in Orange County. Many of the loans were from Argent Mortgage Co., an arm that funded borrowers through mortgage brokers.

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