Nearly 28,000 First Alliance Borrowers Will Share an Initial
Redress Pool of Almost $45 Million
Nearly 28,000 borrowers will start receiving compensation checks this week from an
initial redress pool of almost $45 million that resulted from an FTC settlement with home mortgage lender First
Alliance Mortgage Company. Some 20,000 borrowers who obtained home mortgage loans through First Alliance will
receive a portion of the loan origination fees charged them by the company, while about 8,000 borrowers who
previously released their rights against First Alliance in a separate action will receive $500 each. According to the
settlement, the consumer redress pool will receive additional funds as certain legal proceedings involving First
Alliance are resolved. The 20,000 consumers receiving an initial refund this week can expect additional
compensation in 2003 once those funds are received. Read
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