BIG LENDER TO PAY BIG FOR “PREDATORY” LOAN PRACTICES

October 11, 2002

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One of the largest U.S. lenders to people with bad credit, Houshold International, Inc., is close to reaching an agreement to pay $500 Million to settle allegations that they engaged in predatory lending, according to the Wall Street Journal.

Among other things, the mortgage giant was accused of having concealed from consumers the true costs of their loans, and tacking on thousands of dollars for unnecessary insurance and inadequately disclosed closing costs.

Editor’s Commentary: It’s a sad state of affairs when creditors such as Household promote the current bankruptcy reform bill and accuse CONSUMERS who use the current bankruptcy law, of being dishonest. The truth be known, the REAL thieves are the large companies that lend money, and steal from honest consumers “a little at a time,” using tricks, fraud, deceit and artifice. Once in a while, they get caught with their “hand in the cookie jar,” like this one did.