Vermont Consumers to Receive Over $360,000 In Ameriquest Settlement

Claim forms are going to eligible consumers, who must submit claims by September 10, 2007

Montpelier, VT - Vermont Attorney General William H. Sorrell and Banking, Insurance, Securities, and Health Care Administration (BISHCA) Commissioner Paulette Thabault said today that notices and response forms are being mailed this week to several hundred Vermont consumers eligible for more than $360,000 in restitution from Ameriquest Mortgage Company and its related companies. The payments are part of a national settlement of a lawsuit brought by state enforcement officials against the company based on Ameriquest’s unfair and deceptive lending practices.

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Sorrell and Thabault said that the notices are being mailed on their behalf by a settlement administrator selected by the states and appointed by the court. To participate in the settlement and receive restitution, consumers must send back their completed and signed forms to the settlement administrator by September 10, 2007.

The forms mailed to each consumer will indicate the minimum payment the consumer can expect to receive. However, the exact amount could be larger, depending on how many eligible Vermont consumers decide to participate in the settlement. Vermont consumers who participate will receive minimum awards estimated to be at least $200 to $2,300 on each eligible loan. The amount of the award on each loan depends on how the terms of the loan and other factors relate to a formula developed by the settling states.

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Sorrell and Thabault encouraged consumers to study the claim forms and information and reply as soon as possible.

Consumers who opt to receive the restitution payments relinquish their right to file lawsuits against Ameriquest related to the loans covered by the settlement. Therefore, consumers are encouraged to consult with a private attorney before deciding whether to participate in the settlement. However, consumers who participate in the settlement do not give up any defense they may otherwise raise if their home goes into foreclosure.

As required by the settlement, which was reached early last year, defendants made substantial changes to their lending practices, and paid $125,000 to the State of Vermont in addition to the money that is now being distributed to Vermont consumers.

A pamphlet of “Frequently Asked Questions” was mailed to eligible consumers with the claim form and provides detailed information about the restitution process. Consumers can also obtain further information about the settlement and their eligibility for restitution by going to the settlement administrator’s web site: www.ameriquestmultistatesettlement.com, or by calling 800-420-5875. (If you are hearing-impaired, you may call 866-494-8274.)

The recent Ameriquest mailings implement the 2006 multi-state settlement joined by Vermont to secure restitution for those Vermonters who may have been harmed by Ameriquest’s lending practices and to cement the company’s future compliance with Vermont consumer laws.

Source: Vermont Attorney General