$484 million bill for California finance company

By Don Thompson
Saturday October 12, 2002

SACRAMENTO — Household International Inc., one of the nation’s largest lenders, will pay $484 million to settle illegal lending allegations by state attorneys general and state financial regulators, California officials said Thursday evening. 

The settlement includes $90 million to California. An announcement by state officials from “close to two dozen” states is planned for 9 a.m. Friday in Chicago, though more states were considering joining the settlement Thursday, officials said. 

Prospect Heights, Ill.-based Household International is the parent company of the Household and Beneficial finance companies. Household spokeswoman Megan Hayden had no immediate comment Thursday evening. 

The settlement is larger than the $215 million Citigroup Inc. agreed earlier this year to refund in order to settle federal charges of deceptive lending. That settlement was the largest in the history of the Federal Trade Commission.