Michigan Attorney General Cox Fights Predatory Lending Practices

December 19, 2007 -- LANSING - Michigan Attorney General Mike Cox today announced that more than 18,400 consumers are to receive a check as the result of a nationwide settlement with Ameriquest Mortgage Company. Cox, together with the attorneys general of 49 states and the District of Columbia, sued Ameriquest Mortgage Company for their predatory lending practices.

"We negotiated a strong settlement and are pleased to see money flowing back to Michigan borrowers who were harmed by the company's lending practices," said Cox. "I will not tolerate predatory lending practices in Michigan. Any consumer who is a victim of predatory lending schemes should contact my office immediately."

"We caught Ameriquest ripping off thousands of Michigan consumers," said Acting Commissioner Ross of the Office of Financial Insurance and Services. "This settlement represents a big win for Michigan consumers."

Consumers can call the Attorney General's Office toll-free at 877-765-8388 or the Office of Financial and Insurance and Services toll-free at 877-999-6442.

Under the settlement, 27,858 Michigan borrowers who were customers of Ameriquest Mortgage Company, Town and Country Credit Corporation, and AMC Mortgage Services, Inc. (formerly known as Bedford Home Loans) between January 1, 1999, and December 31, 2005, were eligible to receive the restitution payments.

Each borrower that is part of the Michigan settlement will receive a portion of $14,575,554 in restitution from Ameriquest Mortgage Company and its related companies.

Cox has made the mortgage foreclosure issue facing Michigan a priority for his office. On December 13, Cox held the nations largest foreclosure forum for homeowners at Cobo Hall in Detroit. The "Avoid Foreclosure Forum - Tools and Tips to Save Your Home," brought out 23 of the nations largest lenders, 31 independent loan counselors and offered free seminars every 45 minutes to help homeowners avoid foreclosure. More than 4,200 homeowners attended the forum with some receiving help and adjustments to their mortgages onsite.

"Michigan has always been a great place to experience the American dream of homeownership," Cox said, "I will not stand by and allow the acts of unscrupulous lenders to tarnish this great State's image. My office will continue to enforce the laws that protect Michigan homeowners and help inform them of ways to avoid foreclosure."

Consumers who are part of the settlement and have questions about the payment procedures may go to the Settlement Administrator's website: http://www.ameriquestmultistatesettlement.com/ . Consumers also may contact the Settlement Administrator, toll free, at 800-420-5875 (hearing-impaired persons may call 866-494-8274).

Nationwide more than 481,000 borrowers who were customers of Ameriquest Mortgage Company, and its related companies were eligible to receive the restitution payments. Restitution payments nationwide are expected to total more than $300 million.

Source: Michigan Attorney General