DENVER -- More than 11,000 Coloradans are eligible for $8.3 million in restitution as part of a national settlement with Ameriquest Mortgage Company, the Colorado Attorney General announced Thursday.

The multistate settlement was a result of complaints that Ameriquest and its affiliates were using unlawful lending practices, including misrepresenting and not adequately disclosing the terms of home loans, such as whether a loan carried a fixed or an adjustable rate; charging excessive loan origination fees and prepayment penalties; refinancing borrowers into improper or inappropriate loans; and improperly inflating appraisals.

"The mortgage marketplace is a complicated and oftentimes confusing place to shop for a loan. Many consumers have difficulty understanding the terms of a mortgage, and companies that purposefully obfuscate the process should be held accountable for their deception," said Attorney General John Suthers.

The 11,575 Colorado consumers who are eligible for restitution will receive letters and claim forms from the Attorney General's Office. Individual Colorado consumers will receive payments between $123 and $3,462.

To participate in the settlement and receive restitution, consumers must mail completed forms to the settlement administrator by Sept. 10, 2007. More information can be found at AmeriquestMultiStateSettlement.com, or by calling 800-420-5875.

More than 481,000 borrowers who were customers of Ameriquest, Town and Country Credit Corp., and AMC Mortgage Services, Inc. (formerly known as Bedford Home Loans) between Jan. 1, 1999, and Dec. 31, 2005, are eligible to receive restitution payments.

Payments nationwide are expected to total nearly $300 million.