23 January 2006

Subprime Lender Busted

Up to 12,500 Coloradan's will share in a $295 million national settlement with subprime lender Ameriquest, which will also be required to reform its lending practices. It was accused of using deceptive practices to secure mortgage refinancing deals. While the settlement is only a few hundred dollars per affected consumer, I assure you that companies in real life do not pay three hundred million dollar settlements of claims that are truly groundless and frivilous, simply to make them go away and avoid the costs of litigation, nor do state attorney generals in every state sign on to such cases.

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