Florida Ameriquest Lawsuit Alleging Title Insurance Homeowner Ripoff Now Certified As Class Action; Damages Could Exceed $13M

In Pinellas County, Florida, The Miami Herald reports:

• A lawsuit that alleges lender Ameriquest Mortgage overcharged for title insurance on home refinancings can proceed as a class action, a state judge ruled. Coral Gables lawyer Richard Bennett, who filed the lawsuit in Pinellas County in 2006, estimates the class involves about 66,000 Floridians who refinanced their homes with Ameriquest from May 19, 2002 through 2006. Instead of charging the lower ''reissue rate'' for title insurance on refinancings, the suit claims, Ameriquest collected the higher rate charged on home purchases. Bennett said the overcharges on the policies he has reviewed generally have ranged from $200 to $300 per customer. Assuming that range is typical for the class, the potential damage claims could exceed $13 million.

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• The lawsuit may be the first filed against a lender for overcharges on title insurance, Bennett said. Several class-action lawsuits were brought against title insurance companies in recent years, with some leading to out-of-court settlements. Ameriquest was the only party sued in the Pinellas County case because it collected the title-insurance costs from the loan proceeds, which it then sent to title agents. ''We didn't follow the money,'' Bennett said in explaining why Ameriquest was the only defendant.

For more, see Title insurance overcharge suit advances (A lawsuit that accuses Ameriquest Mortgage of overcharging for title insurance on home refinancings has been certified as a class-action) (story no longer available online).

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