The settlement resolves allegations that Ameriquest and its affiliates, among other things, misrepresented and did not adequately disclose the terms of home loans, such as whether a loan carried a fixed or an adjustable rate; charged excessive loan origination fees and prepayment penalties; refinanced borrowers into improper or inappropriate loans; and improperly inflated appraisals used to qualify borrowers for loans.

The department began sending letters and claim forms to 2,264 eligible Hawai'i consumers on Monday. To participate in the settlement and receive restitution, consumers must mail completed and signed forms to the Ameriquest Settlement Administrator, P.O. Box 1855, Faribault, MN 55021-7110, by September 10, 2007.

"The forms mailed to each consumer will indicate the minimum payment the consumer can expect to receive," said Stephen Levins, executive director for the department's Office of Consumer Protection. "However, the exact amount could be larger, depending on how many eligible Hawai'i consumers decide to participate in the settlement."

The department encourages consumers to study the claim forms and information and reply as soon as possible. Consumers who opt to receive the restitution payments relinquish their right to file lawsuits against Ameriquest related to the loans covered by the settlement. Therefore, consumers are encouraged to consult with a private attorney or, if they qualify, a legal services attorney before deciding whether to participate in the settlement. However, consumers who participate in the settlement do not give up any claim they may otherwise raise if their home goes into foreclosure.