We refinanced out of our Ameriquest loan in January, 2004. We were completely aware of a prepayment penalty per the original Note. The ppp was to be calculated as follows: Prepayment from 0% - 20% of the original balance of the loan is accepted annually without penalty. Over 20% prepayment would incur six-months interest based upon the new balance of the loan after deducting the 'free' 20% prepayment.

This ppp is in accordance/agreement with California Civil Code 2954.9. In our refinance situation, we were prepared to pay the ppp based on the 80% of our original note; however, Ameriquest charged us six-months interest calculated on 100% of our original Note amount. The overcharg amounted to $2,824.64. Phone conversations with the Pay Off Department of Ameriquest left me dizzy; it appears that their Pay Off folks are unable to comprehend their own contracts. I found myself explaining to the young gal on the phone how the ppp clause works and her only reply was, 'Well, we've calculated it correctly.' Oy. Since then I have been faxing, calling, sending letters to no avail. Zero response from Ameriquest.

I have been preparing to visit an attorney to discuss options and research class-action possibilities. Lo and behold, today in the mail, I received a Notice of Settlement of Class Action (Ansley v. Ameriquest from the Superior Court of the State of California, County of Orange). While Ameriquest 'has denied and continues to deny each and all claims' they have agreed to pay out $1.6M to the Settlement Class. Great, I'm going to get my $2,824.64 back, right? Wrong! That $1.6M will be distributed to the Settlement Class Members based on 10.67% of the overcharged amounts. I will see a check for $301.39. Those rats will still have $2,523.25 of my money and 89.33% of every other Class Member whom they ripped off.

Of course, I could opt out of the Settlement and pursue my own individual suit with Ameriquest, but with this precedent-setting case, what are my odds? FYI, a parity exists between the federal regulations regarding prepayments and individual states' restrictions on ppps. Ameriquest's stance that the federal level supercedes the state (which is much more convenient, read 'lucrative' for them) was rejected by The Honorable Stephen J. Sundvoid. For background, see http://66.102.7.104/search?q=cache:pG_8UchUR5wJ:caselaw.findlaw.com/data2/circs/9th/0255848P.pdf+california+civil+code+2954.9&hl=en. This is not the actual case, but an appeal in the Ninth Circuit Court regarding attorney's fees.

Hopefully this is the end for me with this. I can take my big fat file folder, labeled 'Ameriquest Refinance Fiasco' and file it away in the Bad Memories drawer. And then, when I receive my mockery of a check for $301.39, I'll use it to go wild and travel the world.

Patricia
San Jose, California
U.S.A.

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