Household Accused of Overcharging in Suit
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Household International Inc.’s Household Finance and Beneficial units were accused of overcharging consumers in a lawsuit by California regulators.
California’s Department of Corporations claims both lenders have routinely charged excessive administrative, late and other fees to borrowers of $2,500 or less. Household spokeswoman Megan Hayden said it refunded money to consumers earlier this year after a state audit and was surprised by the lawsuit.
Regulators want a judge to order Household to pay at least $3.57 million in penalties and Beneficial to pay $4.99 million. The penalties are needed to remedy “thousands of violations” and protect the public from future violations, according to the lawsuit filed in Los Angeles Superior Court.
California regulators claim that the lenders have routinely imposed $75 administrative fees, instead of the maximum $50 permitted by state law.
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