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ST. LOUIS NEWS TODAY - Sunday, July 15, 2007
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Blunt Signs Anti-Fraud Protections for Missouri Home Buyers
JEFFERSON CITY, (SLFP.com), July 15, 2007 - Gov. Matt Blunt has signed legislation to help protect consumers from title insurance schemes and ensure that unscrupulous insurance agents who take advantage of trusting consumers are held accountable. The law fights fraud by both improving consumer protection for Missourians buying a home and closing insurance loopholes affecting insurance and annuities sales.
"No Missourian should have to fall victim to the potentially devastating impacts of insurance fraud," Gov. Blunt said. "This bill enacts important provisions to protect Missourians purchasing a new home or investing in their future and cracks down on loopholes to put a stop to unscrupulous insurance agents and ensure all agents protect their customers' best interest."
All Missouri homeowners with a mortgage are required to purchase title insurance when buying a home. Unfortunately in the last several years, a handful of title insurance agencies used customers' money inappropriately and ultimately were forced to close because of the abuse. Senate Bill 66, sponsored by Sen. Scott Rupp, offers important protections to help put an end to this fraud for Missouri consumers. The legislation ensures Missourians hard-earned money will not be used inappropriately by requiring mandatory audits of insurance agency's transactions.
In addition, the legislation mandates rules to hold agents accountable to protect customers' interests. In recent years, there have been incidents in which agents have taken advantage of customers by selling them products that are completely inappropriate for their needs. One example is selling annuity products to the elderly. Annuities are most commonly intended for long-term investment and do not generally have the flexibility to benefit some older customers. The legislation increases the civil penalties for agents who take advantage of customers from $100 to a fine of up to $20,000 per violation, with a maximum penalty of up to $1 million for multiple violations. If the fraud causes a financial loss to the consumer, penalties of up to $1 million per violation with no limit for multiple violations may be issued.
"People buy insurance to protect themselves in a time of need," Sen. Scott Rupp said. "This bill provides the consumer protections necessary to ensure the insurance will be there when they need it, and at the best possible price provided through licensed agents."
Settlement with Ameriquest Nets $3.6 Million in Refunds
ST. LOUIS, (SLFP.com), July 15, 2007 - Attorney General Jay Nixon has announced that 7,325 Missouri consumers are eligible for $3,637,518 in restitution from Ameriquest Mortgage Co., the nation's largest sub-prime lender, as part of a $325 million national settlement of a predatory lending lawsuit against the company.
Some 481,000 borrowers nationwide who were customers of Ameriquest or several of its affiliates between 1999 and 2005 were eligible to receive restitution payments. The forms mailed to each consumer will indicate the minimum payment the consumer can expect to receive. The exact amount could be larger, however, depending on how many eligible Missouri consumers decide to participate in the settlement.
To participate in the settlement and receive restitution, borrowers who are receiving the latest notification have until Sept. 10, 2007 to mail their completed and signed claim forms to the third-party settlement administrator. Nixon encouraged consumers to study the claim forms and the information enclosed with the forms and reply as soon as possible.
Consumers also can obtain detailed information about the settlement and their eligibility for restitution by going to the settlement administrator's Web site, www.ameriquestmultistatesettlement.com, or by calling 1-800-420-5875. Hearing impaired persons may call 1-866-494-8274.
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