Subprime mortgage outfit Ameriquest is cutting back its workforce and closing 229 branches as it moves its business entirely onto the Internet, reports the Los Angeles Times. The Orange County, Calif.-based company will let 3,800 people go from its 11,000 workforce.

The company had made its mark in lending to people with poor credit records but faced charges in all states that it had used deceptive practices to re-finance mortgages, often more than once, to collect fees rather than put borrowers into a better deal. In January it settled the case with a $325 million fine but did not admit any wrongdoing.

Under the new scheme, would-be borrowers will apply online and then be contacted by a company representative from one of four regional offices. “We see a fundamental shift underway in how nonprime consumers shop for mortgage loans, away from bricks and mortar,” said Adam Bass, ACC Capital’s vice chairman, said in a statement.

The centralization, some analysts tell the paper, will make it easier to manage incentives and prevent the kind of tactics that brought the original complaint against the company. And, in any case, higher rates are causing a shakeout in the subprime lending business because it is harder to make deals work with more interest to be repaid.