Ameriquest Settles With CT

Ameriquest Mortgage, Orange, Calif., will pay $7.25 million as part of a settlement with Connecticut banking regulators which had sought to ban the subprime giant from the state.Connecticut had accused the privately held Ameriquest of charging consumers excessive finance charges. The lender will pay a civil penalty of $1 million and reimburse customers who were overcharged through excess fees. Those affected will also receive at least $500. Most of the money paid will be used to set up a state housing assistance fund. A hearing to air the state's charges had been delayed several times since March, and the company continued to fund loans in the state during the continuances. As part of the settlement, Ameriquest will be subject to four semiannual compliance reviews. In a mid-February bond filing, Ameriquest disclosed that it is in talks with 25 "regulatory agencies and/or attorney generals" regarding some of its lending practices. (Connecticut is one of the 25.)