Class Certified in Excessive Loan Origination Fee Action Against Household Finance Corporation and Beneficial Loan and Thrift Company |
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The class has been certified in an action filed against lender Household Finance Corporation and its Beneficial Corporation subsidiary on behalf of mortgage borrowers nationally who allege that the companies violated their loan agreements by overcharging interest on loan origination fees. The action seeks unspecified compensatory damages. Persons eligible to take part in this action need take no action at the present time. The action alleges that Household breached its contracts by computing customers' average daily loan balances to include certain finance charges and by collecting unearned interest when customers paid off their loans. The loans in question were allegedly issued by Beneficial Loan and Thrift, a company that was acquired by Household in 1998.
In October 2002, in a separate action, Household agreed to pay $484 million across 35 states to settle predatory lending allegations.
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