Bankrupt subprime lender Fremont General Corp. of California agreed to pay $10 million to settle a lawsuit alleging that it engaged in unfair loan practices in Massachusetts.

Fremont, once one of the largest B&C wholesalers in the U.S., also agreed not to foreclose on what the Massachusetts attorney general called "unfair loans."

In total about 2,200 foreclosures may be prevented, for now.

The payment includes $8 million in consumer relief, $1 million in civil penalties, and $1 million in attorneys' fees.

In 2007 the state accused Fremont of engaging in predatory and unfair lending practices by funding mortgages to consumers who could not afford them.

Fremont denied wrongdoing. Even though Fremont's depository is no longer in business, the holding company continues to trade on the "pink sheets."

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