About 78,000 Californians who got loans from Ameriquest Mortgage or its sister companies should soon receive paperwork allowing them to file for compensation from the companies, which agreed to pay its customers $295 million to settle allegations of unfair sales practices nationwide.

The settlement includes about $51 million for California customers of Ameriquest Mortgage, Town & Country Credit and AMC Mortgage Services, formerly Bedford Home Loans, according to California Attorney General Jerry Brown.

appraisals and charging excessive loan origination fees. In the settlement the company admitted no wrongdoing but agreed to change some of its practices.

For more information, visit Ameriquest Mulit-State Settlement
Contact Sue McAllister at smcallister@mercurynews.com or (408) 920-5833

Customers who borrowed loans from the companies from 1999 to 2005 are eligible for compensation, which will average about $812, Brown said. Those who accept the payment give up their right to sue Ameriquest, unless their homes go into foreclosure.

Brown's office began mailing letters and claim forms to Californians this week; the settlement with Ameriquest was announced in January and affects customers in all states except Virginia, where Ameriquest did not do business. In addition to $295 million in payments to customers, Ameriquest's parent company, ACC Capital Holdings, of Orange, also will pay $30 million to reimburse states for legal fees and other costs.

Ameriquest is one of the nation's largest lenders to borrowers with imperfect credit. It and the other companies, all owned by ACC Capital Holdings, were accused of failing to disclose loan terms properly, refinancing borrowers into inappropriate loans, inflating property appraisals and charging excessive loan origination fees. In the settlement the company admitted no wrongdoing but agreed to change some of its practices.

For more information, visit Ameriquest Mulit-State Settlement.

Contact Sue McAllister at smcallister@mercurynews.com or (408) 920-5833
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