An estimated $4 million settlement to a class-action lawsuit against Ameriquest Mortgage Co., involving about 8,700 Minnesotans, received final approval in Hennepin District Court this week.
Allegations against the lender included charging borrowers higher-than-promised interest rates and improper discount points, and failing to disclose prepayment penalties.
The settlement is to cover any increased costs to the borrower as a result of the disputed practices, for mortgages granted since Feb. 17, 1999, according to plaintiffs' attorney J. Gordon Rudd in Minneapolis.
The decision issued Dec. 17 by Judge Lloyd Zimmerman draws no conclusion as to the guilt or innocence of Ameriquest, which has denied any wrongdoing.
A call for comment to the Delaware-based company was not immediately returned.