Household Financial
Call for Action has been wordking with the Rhode Island Attorney Generals office on a case involving Household Financial. The company was accused of predatory lending practices and today, for the consumers they ripped off...it's pay back time.
If you've jumped aboard the refinancing boat to riches...it's been a pretty good ride...but for 14-hundred Rhode Islanders who signed on with Household Financial, most have been drowning in bills, and fees, putting them in a mountain of debt.
Paula Caetano, Victim of Predatory Lending
"They charged us 7.2 points which cost us $11-thousand dollars."
Paula and Ron Caetano of Pawtucket, feel like Household Financial, the company they trusted with their home and money, put them in such a bad position, that Household could threaten foreclosure.
Paula
"30-thousand dollars of it, what we borrowed, was to pay them back for the 2nd mortgage we had."
But now, the very people Household took money from, are fighting to get it back. There's been a history of complaints going back over a year. The Attorney's General in all 50 states have filed a class action lawsuit on behalf of the thousands of consumers in their states, including 14-hundred Rhode Islanders.
Jim Lee, Dir. Civil Division, RI Attorney General
"Some of the violations included, charging pre payments, penalties that were improper, and refinancing too high amounts."
After a court battle for more than a year, Household Financial has reached a 484 million dollar settlement. And just this morning, Call for Action has learned that Rhode Island's share of the settlement, 1.4 million dollars, has been approved to be distributed to those who deserve it. People like the Caetano's who feel that for so long, no body cared.
Paula
"Nobody can give us an answer, we don't want to be left out in the cold, we want something back."
If you are a customer of Household Financial, and qualify for some of this settlement money, you will be notified within the next 24 to 48 hours. You don't need to call any state agency to sign on, they know who you are and will contact you.
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