CREDIT-REPORT SUIT SETTLEMENT REACHED.

Byline: Evan Pondel Staff Writer

CALABASAS - A lawsuit accusing Countrywide Home Loans Inc. of overcharging its customers for credit reports will most likely reach a final decision next week in Los Angeles Superior Court.

Countrywide and plaintiffs' attorneys have already agreed on a settlement in which the Calabasas-based company would pay $7.50 each to 5,419 borrowers who might have been overbilled upon receiving loans at a branch office in Brea. Customers who obtained a first mortgage between July 1996 and April 2002 have already been notified by mail of the proposed settlement.

The lawsuit, filed on behalf of Countrywide customers Anne Gonzales and Julie Tower in July 2000, alleged that the company was ``unlawful and deceptive under California's unfair competition law.''

But Countrywide denies any wrongdoing, said company spokesman Rick Simon.

``The settlement speaks for itself,'' he said. ``And there's not really anything else to comment on.''

Howard Strong, who is part of the lawsuit, does not agree with the terms of the proposed settlement. The Tarzana attorney said he believes an agreement between Countrywide and the plaintiffs' attorneys was reached too hastily.

``This is an example of class-action abuse,'' he said. ``The settlement is inexpensive for the company and basically allows them to simply walk away.''

As part of the settlement, 263,500 consumers would also receive a $35 coupon that can be applied toward a new refinance loan through Countrywide. Strong said he finds the $35 discount ``inadequate.''

``I hope the judge will look at the documents next week and see that this is not a fair settlement,'' he said. ``The class is essentially getting nothing out of this suit.''

Attorneys representing the class have requested that the court award them $145,000 in fees. Henry Rossbacher, lead counsel for the plaintiffs, said he was satisfied with the proposed settlement.

``It appears that Countrywide's overcharging was somewhat random,'' he said. ``And it looks as if this (overcharging) was fundamentally inadvertent. They (Countrywide) were not careful.''

Several letters objecting to the preliminary settlement have been submitted to the court. In one letter, Sigrid Bundy, who is part of the class, said the settlement ``was another grand triumph for the legal profession.''

``The only people who I can see that benefit from this lawsuit are the attorneys. A $35 certificate that can only by used on a new loan or refinance? You must be kidding,'' Bundy said.

Chris Pederson, a class member from Independence, Calif., also disapproved of the settlement: ``I object to the settlement because the $35 certificate is only good toward a new loan. This means, in fact, that Countrywide does not even have to repay the money they stole.''

If every Countrywide consumer used the $35 discount, it could cost the company more than $9 million. Strong said that probably would not happen because some people thought the proposed settlement they received in July was junk mail.

The court will hold a public hearing on the settlement Wednesday in Room 323 of Los Angeles Superior Court, Central Civil West, at 600 S. Commonwealth Ave., Los Angeles.