Ameriquest Lawsuit Information

Ameriquest lawsuits primarily focused on predatory practices and bait-and-switch tactics...

Ameriquest Overview

Roland Arnall, who died in 2008, was born in France and became an American diplomat and businessman, as well as the US Ambassador to Sweden just prior to his death. He was the official owner of ACC Capital Holdings, a business that made him a billionaire during the US housing boom. ACC was a part of Ameriquest Mortgage. He was also the co-founder of the Simon Wiesenthal Center.

ACC Capital Holdings was a national mortgage lender, one of the largest privately held lenders in the US. They were also the largest subprime lender based on their volumes. Roland Arnall solely owned this company.

This whole story did not involve just ACC Capital Holdings, it also involved Argent Mortgage, and AMC Mortgage Services. Argent made wholesale loans through mortgage brokers and AMC carried out customer service activity for all ACC mortgages. When first in business there were no indications of an Ameriquest lawsuit.

Ameriquest was among the first mortgage companies to use computers to search for prospective borrowers and to speed up the loan process - an innovation still used today.

When Ameriquest was flying high it was hard to miss them. They advertised on TV extensively, used blimps and sponsored the Rolling Stones 2005 US tour and several NASCAR drivers. They were the "proud sponsor of the American dream."

Subprime lenders such as Ameriquest made $587 billion in new mortgages in 2004, with Ameriquest's share estimated at being over $50 billion. The market was ripe for an Ameriquest lawsuit.

Ameriquest Problems & Legal Issues

During the major US housing boom, Ameriquest was considered to be a leader in the mortgage industry. However the company faced many accusations by state prosecutors about predatory lending practices.

It seemed the writing was on the wall for Ameriquest mortgage in 2006 when they settled a $325 million lawsuit with 49 state attorney generals. The suits alleged predatory lending, usury (charging excessive interest) and bait and switch tactics.

The bait and switch tactics were luring customers by advertising a product/service at a low price. When the customer came to do business, the company then said the advertised product/service wasn't available, but another one was. Allegations such as this are usually causes of action for an Ameriquest lawsuit.

In May of 2006 bad things started to happen at lightening speed. ACC Capital Holdings closed all of the Ameriquest mortgage branch offices. The plan was to consolidate retail mortgage lending into four regional call centers. Hundreds lost their jobs. Ameriquest was the tip of the iceberg in the mortgage industry fiasco.

In early 2007 ACC Capital Holdings indicated that Citigroup was up-fronting working capital and credit access. Apparently they gained an option to buy Argent Mortgage and AMC Mortgage, but the option didn't extend to Ameriquest. By September 2007, Ameriquest no longer accepted loan applications and were facing several Ameriquest lawsuits.

Ameriquest Lawsuits

Borrowers got fed up in 2007 and filed a class action Ameriquest lawsuit over losing their homes and over the use of what was described as super-aggressive sales practices. Things were also starting to heat up in other areas.

The National Association for the Advancement of Colored People (NAACP) filed a federal class action lawsuit in California alleging the prevalence of sub-prime mortgages and predatory lending practices were the cause of rising foreclosures. It was further alleged the foreclosures were happening more often to African-American families.

In this lawsuit, statistics from the Center for Responsible Lending showed that - even when accounting for credit risk and income - there was still a 31 to 34 percent likelihood an African-American family would receive a higher subprime loan rate. It was further alleged there was a significant disparity between Caucasians and African-Americans with the same risk factors.

More Ameriquest lawsuits kept coming with most of them focusing on accusations of Ameriquest steering customers into predatory loans.

If you have questions about your mortgage or any dealings you may have had with Ameriquest, speak to a well-qualified lawyer who will advise you of your legal rights.




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