• Report: #18159

Complaint Review: Household Finance Corporation

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  • Submitted: Wed, April 03, 2002
  • Updated: Wed, April 20, 2005

  • Reported By:Dallas Iowa
Household Finance Corporation
4200 University Avenue Des Moines, Iowa U.S.A.
  • Phone:
  • Web:
  • Category: Loans

Household Finance Corporation AKA Benificial National Bank AKA Best Buy credit ripoff ,false promises, deceptive company, swindlers, screwed others too, tricked and lied to us, and much more! Buyer Beware!!!! Des Moines Iowa

*Consumer Comment: I am getting rid of hfc as well, these people have done EVERY DECEPTIVE PRACTICE IN THE BOOK

*Consumer Suggestion: Let's Ask our legislators and Attorneys General a slap on the wrist fine and still let them stay in business

*Consumer Suggestion: Let's Ask our legislators and Attorneys General a slap on the wrist fine and still let them stay in business

*Consumer Suggestion: Let's Ask our legislators and Attorneys General a slap on the wrist fine and still let them stay in business

*Consumer Comment: Update from Original Author

*Consumer Comment: Household Employess-Can You Explain... How can you sleep at night????

*Consumer Comment: Don't Believe the HFS corporate spin

*Consumer Comment: Still NOT So True, Larry of Tacoma

*Consumer Comment: Still NOT So True, Larry of Tacoma

*Consumer Comment: Still NOT So True, Larry of Tacoma

*Consumer Suggestion: David Has Just Proved My Point

*Consumer Comment: Response to Larry from Tacoma ..Spoken like a true predator, Larry boy.

*Author of original report: we had excellent credit, we just didn't know better

*Consumer Suggestion: All of you are the reason these companies are in business

*Consumer Suggestion: To Employee Jason

*Author of original report: HFC/Beneficial ended up paying out $484,000,000 for the first settlement

*Consumer Comment: Minnesota stopped them

*Author of original report: HFC says " as a mortgage company they could not offer the same low rates as banks."

*Consumer Comment: Employees their responses makes me understand more

*UPDATE EX-employee responds: We would not straight out lie but definatly did not tell the whole truth.

*UPDATE EX-employee responds: Clarifying the "restructure" program and Household is NOT good to it's honest employees!

*Consumer Comment: Great Company, Beneficial was always willing to help me out

*Consumer Comment: resopnse to household employee

*Consumer Suggestion: To The Employee of Household Finance

*UPDATE EX-employee responds: ex collections employee of household/beneficial rebuttal back to employee who did the rebuttal

*Consumer Comment: bunch of theiving criminals!!!!

*UPDATE Employee: HOUSEHOLD FINANCE IS A GREAT COMPANY

*0: Some legal interests

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Our problems started with an innocent check in the mail and now have led us to a house payment that gets us no where. We found out about Household Finance Corp (HFC) with one of those checks that you get in the mail and then you cash it and it is basically a very high interest loan. When we received this check, we were fairly in debt and were trying to get out. So everything worked out ok, we knew it was high interest from the beginning and the only problem we had at the time of signing up for this loan was the high pressure sales tactics to get us to purchase their credit insurance, which we refused and even had to have then make a new loan agreement because they tried to sneak the insurance in there anyway.

About a year after that, we were having financial troubles again due to my husband getting fired from his job, and although he was employed with a new company, the time we went without a check really hurt us, plus we were paying for COBRA insurance until the new company's kicked in. So we received in the mail once again a letter from HFC saying that we could refinance,etc. and use our equity to pay off other debts or cash out whatever.

Being right before Christmas and with 3 children, it seemed like a miracle.

So we had our house appraised and found out we were going to have over $20000 in equity, but instead of being smart and either selling the house for a better one or going to a real bank, we figured what the heck we need to pay our bills off. We got the loan for a very high interest rate, somewhere around 16% or more, they claimed the interest was so high because we were paying off credit cards with the extra money. (LIARS) Then they told us another big lie, that in 6 months we could refinance no problem for a lesser interest rate. So, we are paying over $600 a month on a $44,000 house. We figured it's just 6 months and then our payment will go down.

Well, about 6 months into the loan, we had problems making a payment (when we got the loan, the swindling sales lady who has since been fired told us that if we ever ran into problems like that to just call and they would work something out such as a defer a payment.). So I called and she was of course too busy to take my call so I spoke with some other liar who told me to just send as much as we could and then collections would get in touch with us about deferring a payment.

So we sent in half a payment and 2 weeks later collections called wanting to know where the rest of the payment was. I told them what the liar lady had told me and they said that was wrong, but they would go ahead and defer a payment for us as long as they could have our payments taken out of our savings account. That seemed reasonable.

So a few months ago (we have now had this 15 year loan for 2 years) I glanced at my bill to see the balance as we were preparing to look into some refinancing so we can begin the remodelling on our fixer upper home. Only to find that we have only paid $400 on the principle.....because when they told me I was deferring a payment, they actually RESTRUCTURED our entire loan. I found this out from a manager (yes it took about 5 phone calls 5 days straight to get him, but I am persistant) who had just started working there a month before. He informed me that when we "deferred" a payment that meant that for the entire time a full payment was not made, we were paying interest for EACH DAY from the last full payment, we would have been better off making the payment a couple weeks late. I told him that I thought that what they were doing was illegal and that if it wasn't illegal it should be but that I knew it was unethical.
So after it was explained to me how bad I had been cheated (and still am being....a year after the "deferred payment" and I am still not paying on my principal. I went to look for a refinance at other banks, who would not accept me because of a) not enough equity or b) income to debt ratio is too high (guess who the highest payment is to). So I called HFC and told them they were screwing me and they were now going to help me. I even offered to extend my loan term to 30 years, he told me the that they would only be able to save us $50 a month. I told him that as soon as I could get out of this loan I was declaring war.
PLEASE NO ONE DO BUSINESS WITH THESE PEOPLE!!!

Kati
Dallas, Iowa

Click here to read other Rip Off Reports on Household Finance

This report was posted on Ripoff Report on 04/03/2002 12:00 AM and is a permanent record located here: http://www.ripoffreport.com/r/Household-Finance-Corporation/Des-Moines-Iowa/Household-Finance-Corporation-AKA-Benificial-National-Bank-AKA-Best-Buy-credit-ripoff-fal-18159. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

I am getting rid of hfc as well, these people have done EVERY DECEPTIVE PRACTICE IN THE BOOK

AUTHOR: Darlene - (U.S.A.)

I have read all the reports, we got royally taken 4 years ago by these leeches. after 4 years of hell, a bankrupcy, i am now 2 days away from closing my loan with a real bank. these people have done EVERY DECEPTIVE PRACTICE IN THE BOOK. my only fear now is how much they will try to tack on to the payoff loan. these people s--k.
plain and simple. i hate them as well with everything i got, yes i was part of the class action settlement, but id love to rake them through the coals just like they've done to my family. I can't wait for the closing, i just pray the interest in the end won't have ruined us.. stay away from these people .... they will rob you blind....
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#2 Consumer Suggestion

Let's Ask our legislators and Attorneys General a slap on the wrist fine and still let them stay in business

AUTHOR: Sharon - (U.S.A.)

Why don't we ask why our legislators and Attorneys General fine them what (to Household--which was being acquired by the multi-zillion HSBC at the time) is a slap on the wrist fine and still let them stay in business. Any search on complaint boards shows a large number, and growing, list of dirty deeds as though no investigation or fine was ever levied. Just check the dates of the complaints. So much for changes in the company's business practices.

I think it's pretty obvious who is in bed with whom. We must continue to spread the word about the lemons in the lending industry, whoever they may be. Obviously, those who have the power to put an end to corporate crime are VERY hesitant to do so.
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#3 Consumer Suggestion

Let's Ask our legislators and Attorneys General a slap on the wrist fine and still let them stay in business

AUTHOR: Sharon - (U.S.A.)

Why don't we ask why our legislators and Attorneys General fine them what (to Household--which was being acquired by the multi-zillion HSBC at the time) is a slap on the wrist fine and still let them stay in business. Any search on complaint boards shows a large number, and growing, list of dirty deeds as though no investigation or fine was ever levied. Just check the dates of the complaints. So much for changes in the company's business practices.

I think it's pretty obvious who is in bed with whom. We must continue to spread the word about the lemons in the lending industry, whoever they may be. Obviously, those who have the power to put an end to corporate crime are VERY hesitant to do so.
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#4 Consumer Suggestion

Let's Ask our legislators and Attorneys General a slap on the wrist fine and still let them stay in business

AUTHOR: Sharon - (U.S.A.)

Why don't we ask why our legislators and Attorneys General fine them what (to Household--which was being acquired by the multi-zillion HSBC at the time) is a slap on the wrist fine and still let them stay in business. Any search on complaint boards shows a large number, and growing, list of dirty deeds as though no investigation or fine was ever levied. Just check the dates of the complaints. So much for changes in the company's business practices.

I think it's pretty obvious who is in bed with whom. We must continue to spread the word about the lemons in the lending industry, whoever they may be. Obviously, those who have the power to put an end to corporate crime are VERY hesitant to do so.
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#5 Consumer Comment

Update from Original Author

AUTHOR: Kati - (U.S.A.)

We finally got out from under HFC! In August of this year (2004) we refinanced through a broker and are now paying about $200 less a month for a larger mortgage loan. However, HFC did not want us to go easily. Three days before we were to close on our new loan they reported us (falsely) as being 30 days past due on my husband's credit report. That dropped his credit score down 70 points. The new mortgage company would not give us the loan for the amount needed. Fortunately, we had screened a couple other companies through our mortgage broker prior and they were willing to accept the orginial credit report they pulled on us.

Of course, I called my local HFC branch demanding answers and of course got the run around until I was promised by three different people that the credit report would be rectified. Two months later it is still not changed. I know these things can take a while,and it may be the credit bureau dragging their feet,so I am giving them until December 1. We were not late on our payment. It was a trumped up "charge" and when I spoke with the branch manager I asked him why it is they would want us to stay if we were supposedly paying late. I told him to just let us go.

There were also those extra fees here and there on the payoff sheet for faxes, etc. There was even one for paying it off...not a prepayment penalty, it was only about $50, but they just had to get their last leeching off of our finances in there. My broker advised me to just pay them and run like the dickens, so we did. Even at the end they were trying to add unfounded interest charges as well. I called them on it and they gave me about 3 different reasons for them. Once again my broker advised me to pay. I did.

We are now free of HFC except for the credit report problem. I do not know how this company can stay in business this way. They had that huge settlement and others in the works even now. For those people who have had nothing but a good experience with this company and their subsidiaries, be thankful! But please don't preach to me, someone who receive a part of that settlement almost a year ago because of their horrid and deceptive practices. If they are so innocent, then why settle out of court?

For anyone who is conteplating doing business with HFC, Benficial or any subsidiaries (Household bank, which now manages your Sears card account as well as Best Buy accounts among others)please read all of the rip off reports and heed what people like myself have gone through.
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#6 Consumer Comment

Household Employess-Can You Explain... How can you sleep at night????

AUTHOR: Sharon - (U.S.A.)

The first letter writer's experience really hit home.

First, can any employee tell me where Household got the car that showed up on their application (which took us 8 months to get a copy of)?

Can you explain why you tell people their interest will go down if you pay on time for xxx amount of months--and then later the company will deny it ever said such a thing?

Can you tell me why, when we went in person to a branch office to see if we could re-fi from the 24% interest we ended up getting (and which we were NOT quoted), we were given a dead end 1-800 number and told that all re-fis were done from that number--a number where it is inpossible to reach a human being to talk to and just refers the caller back to their local office?

Can you explain how Household can make an equity loan when there is not equity left in the house?

Can you explain why, after 15 years of paying, only about $900 is put against a principle of $35,000?

How can you sleep at night????
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#7 Consumer Comment

Don't Believe the HFS corporate spin

AUTHOR: Rex - (U.S.A.)

Don't Believe the HFS corporate spin in the above columns. HFS AKA Beneficial is a financial nightmare. In 2000 they closed the sale and released the lien on a house my wife owned, accepting a payment that matched the payoff statement Beneficial supplied. I could go on and on about the ridiculous little fees they charged at the closing, $ 20 for a fax, $ 40 for the payoff statement etc.

I have a pile of documents that show how they took my wife's loan from 29,000 to 40,000 by churning it three times . I wonder if this is that payment deferral?

About a year later Beneficial's abusive collection agents started calling us demanding $ 2400.00. To make a long story short, the deal went to the attorney general of the state of Minnesota and because I had good documentation, after numerous certified letters and conversations, I proved we owed Beneficial nothing.

But my wife and I wonder how many people get ripped off blind by Beneficial because they do not have a document happy letter writer in the family. My wife says she would have just paid the $ 2400 before I came along because she never kept documents.

You would laugh at some of the conversations we had with Beneficial people who would say things like we don't know where these numbers came from, but are working to get rid of them LOL and I am working with transfers to our equity accounts to eliminate these numbers

OK after a settlement amounting to I don't owe you and don't bother me anymore by mail or otherwise Beneficial goons called us again about a year later. They blocked the called ID, would not identify their company and bellowed repeatedly demanded our social security numbers. Refusing, I hung up. Having a hunch who this is, I looked up the collections number for Beneficial. I called this number and it was the SAME agent LOL but this time she was very sheepish almost panicking. I was rolling on the floor laughing. I sent in another certified letter with a warning and have not heard from Beneficial again.
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#8 Consumer Comment

Still NOT So True, Larry of Tacoma

AUTHOR: Mayemona - (U.S.A.)

First of all Larry everyone with slow or bad credit does not have lots of credit cards or buys high priced items they cant afford. I know so, I am one of them. I've only had 1 credit card in my 31 yrs. What if you lost your job today and was not able to get another one for quite some time. Everyone even with a college degree may not make a lot of money. I always try for bargains and shop wisely and I dont shop that much at all when it comes to "wants" mostly "needs". Don't you think there are a lot of people who if they made enough money would pay their bills and pay them on time?

I know if I did and did not have to struggle I would. That is why I am returning to college this fall. So then maybe I can get a job making a lot of money. If everyone had lots of money then maybe they would not have to come to banks such as where you work and and take out loans. Then your job security goes down now doesn't it? I know if I could I would pay cash for everything because things are getting out of hand with unethical companies praying on people. Some people just want to live comfortably and it costs them a lot. Where as I bet you've been blessed to have a good job that relies on people making loans. You know there are some people I have met such as a lady I used to work with who bragged about dodging the repo man or not paying bills even when she had the money. Now that is not right at all.

These people are just as bad as the bad companies but there are a lot of people who do fall on hard times and situations that leave them in a bind to pay the bills. I know my children would eat and have clothes on their backs and shoes on their feet and certaintly a roof over their heads before anything else. So to you Larry I say get off your high horse and be thankful for what you have and for the job you have because if your company head ceos or presidents have an accountant who is "cooking" the books and you find yourself without a job.

You know like the enron scandal. Then maybe you'll get to see what it is like to be one of us. Maybe you'll think more than twice before you judge all people with less than good credit. I have an account with this company and they call me if I am 1 day late. Also my situation has changed drastically from the time when I first financed my car, and no it is not a Lexus it was a car I could afford comfortably at the time, a Ford Escort.

So far they have worked with me but after seeing this web site I hope I do not find myself in one of these situations because right now it is very very hard. Larry also one other thing I know these letters are edited so I am sure you had other judgmental things to say about people with less than good credit. Do you carry these thoughts to work with you at the bank everyday, Larry? Dont get caught up into sterotypes either Larry. I pray you have a blessed day Larry.
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#9 Consumer Comment

Still NOT So True, Larry of Tacoma

AUTHOR: Mayemona - (U.S.A.)

First of all Larry everyone with slow or bad credit does not have lots of credit cards or buys high priced items they cant afford. I know so, I am one of them. I've only had 1 credit card in my 31 yrs. What if you lost your job today and was not able to get another one for quite some time. Everyone even with a college degree may not make a lot of money. I always try for bargains and shop wisely and I dont shop that much at all when it comes to "wants" mostly "needs". Don't you think there are a lot of people who if they made enough money would pay their bills and pay them on time?

I know if I did and did not have to struggle I would. That is why I am returning to college this fall. So then maybe I can get a job making a lot of money. If everyone had lots of money then maybe they would not have to come to banks such as where you work and and take out loans. Then your job security goes down now doesn't it? I know if I could I would pay cash for everything because things are getting out of hand with unethical companies praying on people. Some people just want to live comfortably and it costs them a lot. Where as I bet you've been blessed to have a good job that relies on people making loans. You know there are some people I have met such as a lady I used to work with who bragged about dodging the repo man or not paying bills even when she had the money. Now that is not right at all.

These people are just as bad as the bad companies but there are a lot of people who do fall on hard times and situations that leave them in a bind to pay the bills. I know my children would eat and have clothes on their backs and shoes on their feet and certaintly a roof over their heads before anything else. So to you Larry I say get off your high horse and be thankful for what you have and for the job you have because if your company head ceos or presidents have an accountant who is "cooking" the books and you find yourself without a job.

You know like the enron scandal. Then maybe you'll get to see what it is like to be one of us. Maybe you'll think more than twice before you judge all people with less than good credit. I have an account with this company and they call me if I am 1 day late. Also my situation has changed drastically from the time when I first financed my car, and no it is not a Lexus it was a car I could afford comfortably at the time, a Ford Escort.

So far they have worked with me but after seeing this web site I hope I do not find myself in one of these situations because right now it is very very hard. Larry also one other thing I know these letters are edited so I am sure you had other judgmental things to say about people with less than good credit. Do you carry these thoughts to work with you at the bank everyday, Larry? Dont get caught up into sterotypes either Larry. I pray you have a blessed day Larry.
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#10 Consumer Comment

Still NOT So True, Larry of Tacoma

AUTHOR: Mayemona - (U.S.A.)

First of all Larry everyone with slow or bad credit does not have lots of credit cards or buys high priced items they cant afford. I know so, I am one of them. I've only had 1 credit card in my 31 yrs. What if you lost your job today and was not able to get another one for quite some time. Everyone even with a college degree may not make a lot of money. I always try for bargains and shop wisely and I dont shop that much at all when it comes to "wants" mostly "needs". Don't you think there are a lot of people who if they made enough money would pay their bills and pay them on time?

I know if I did and did not have to struggle I would. That is why I am returning to college this fall. So then maybe I can get a job making a lot of money. If everyone had lots of money then maybe they would not have to come to banks such as where you work and and take out loans. Then your job security goes down now doesn't it? I know if I could I would pay cash for everything because things are getting out of hand with unethical companies praying on people. Some people just want to live comfortably and it costs them a lot. Where as I bet you've been blessed to have a good job that relies on people making loans. You know there are some people I have met such as a lady I used to work with who bragged about dodging the repo man or not paying bills even when she had the money. Now that is not right at all.

These people are just as bad as the bad companies but there are a lot of people who do fall on hard times and situations that leave them in a bind to pay the bills. I know my children would eat and have clothes on their backs and shoes on their feet and certaintly a roof over their heads before anything else. So to you Larry I say get off your high horse and be thankful for what you have and for the job you have because if your company head ceos or presidents have an accountant who is "cooking" the books and you find yourself without a job.

You know like the enron scandal. Then maybe you'll get to see what it is like to be one of us. Maybe you'll think more than twice before you judge all people with less than good credit. I have an account with this company and they call me if I am 1 day late. Also my situation has changed drastically from the time when I first financed my car, and no it is not a Lexus it was a car I could afford comfortably at the time, a Ford Escort.

So far they have worked with me but after seeing this web site I hope I do not find myself in one of these situations because right now it is very very hard. Larry also one other thing I know these letters are edited so I am sure you had other judgmental things to say about people with less than good credit. Do you carry these thoughts to work with you at the bank everyday, Larry? Dont get caught up into sterotypes either Larry. I pray you have a blessed day Larry.
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#11 Consumer Suggestion

David Has Just Proved My Point

AUTHOR: Larry - (U.S.A.)

You should always read carefully so you can fully comprehend what is being articulated in any given document. David's response clearly illustrates this point. I was not attacking anyone. I was just making a point. Never did I say, nor did I insinuate that people with bad credit are "criminals" or "sub human". I also never mentioned anything about people who have had their identities stolen. I feel nothing but compassion for anyone who has been a victim of a crime. David also insinuated that I worked for one of these sub prime lenders. That is not true. I am employed in the investment banking field through a large "prime" lender.

My observations have been gleaned from a culmination of reading, client interaction and personal experience. With that behind us I must say the following: Among David's angry comments was one that contained an especially glaring mistake. David said "Aside from the destructive effects of Identity theft, people have credit problems for a variety of reasons, most if not all are not their fault, nor does anyone ask for bad credit." MOST IF NOT ALL ARE NOT THEIR FAULT!!! Please get your head out of the sand David. We all have friends, family members, etc... that have made one bad financial decision after another. Do you ever read comments in here? Half of the people here admit to bad decisons that have caused them problems. Credit card debt is one of the biggest problems in this country today. People succumb to buying high ticket items that they really cannot afford and can honestly live without. They get a credit limit of $5000.00 and immediately go and buy a big screen television, expensive clothing, etc... . So now they are facing a large bill with a less than competitive interest rate. This is usually when the "hard times" show up. Hard times can be things like overtime being cut, unexpected car or home repairs, unexpected medical or dental bills, etc... . Most people in this position start losing ground rapidly and before you know it are in a mess. Payments to creditors become increasingly delinquent and in as little a six months your credit can be severely damaged. Once that credit score has dropped significantly enough you will no longer be able obtain credit from a prime lender (i.e. a regular bank). This is when people become desperate and go to the sub prime lenders. You end up getting gouged on the interest rate and if you do not read everything closely can end up getting into more trouble. My point is plain and simple: If you can't afford to buy it up front with cash than don't buy it. If you really want it, save for it in an interest bearing savings account. You may discover that when you get the money saved up you may change your mind about buying the item. If you have a credit card, only use it for emergencies (i.e. unexpected car or home repairs that must be done immediately). Finally, if you live outside your means as we all do from time to time and trouble strikes, take responsibility and deal with the situation. Good luck to all...even you David!
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#12 Consumer Comment

Response to Larry from Tacoma ..Spoken like a true predator, Larry boy.

AUTHOR: David - (U.S.A.)

Of course the only way do defend your idiotic comments is to try to make us believe that people with bad credit are sub-humans or criminals who willingly run themselves into credit trouble. Aside from the destructive effects of Identity theft, people have credit problems for a variety of reasons, most if not all are not their fault, nor does anyone ask for bad credit. You are right though, people like you would not be in business if we all had good credit. You people who prey on those with financial and credit trouble are part of the problem, not the solution. You make me want to vomit.
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#13 Author of original report

we had excellent credit, we just didn't know better

AUTHOR: Kati - (U.S.A.)

Thank you, Larry for your wise words. Although I do have to disagree with you on some of it.

When we were first solicited by HFC several years ago, we had excellent credit, we just didn't know better. We were in financial trouble, not credit trouble.

HFC was able to offer us quick money with a quick close. Versus a real bank which would have taken weeks to close. Impatience was our downfall there.

Call us young and stupid, or chalk it up to inexperience, I guess. Maybe the two are one in the same.

Also with the paper work, we did understand what we were reading, if only we had all of the paperwork in front of us. We were unaware that it was not all present until our attorney general informed us after sending copies of our loan papers.

It is true, that HFC and its subsidiaries prey on those with less than perfect credit the majority of the time. This is why it is called predatory lending. I suppose they also prey on the young and inexperienced as well; such is the case with us.

But, thanks again Larry for your insight...hopefully it will help people to pay more attention.

Also, it seems that most employees of HFC and subsidiaries are unaware of the law suits against (won or still pending) their employer. Makes me wonder....
Kati
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#14 Consumer Suggestion

All of you are the reason these companies are in business

AUTHOR: Larry - (U.S.A.)

The reason these "sub prime" lenders are in business is because people have bad credit. If you had good credit these companies would not be soliciting your business. I think any reasonable person will agree that if you sign a contract with any lender and you do not honor that contract than there should be consequenses. When you sign for any installment loan or any line of revolving credit there is a disclosure statement that you must sign. Read it. If you don't understand it, don't sign it. The common theme that I see in all of these complaints is "we ran into hard times". Everyone runs into hard times. Well if you are borrowing money from HFC, Beneficial, American General Finance or any "sub prime lender" you have a bad credit history. You need to realize that regular banks will not touch you because you are a bad risk. When you make bad financial decisons these are the consequenses.
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#15 Consumer Suggestion

To Employee Jason

AUTHOR: Coleen - (U.S.A.)

Hate to tell you this kid but I had always "paid my loan" on time. I also think that you need to stop being so naive and take a look around you when you get to work. Its great that you think HFC is a wonderful place to work. But can you honestly say that your employer is honest? No I don't think that you can.

Your employer declared bankruptcy about a year ago last summer for what the banking world calls bad lending practices. You tell me is that honest?
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#16 Author of original report

HFC/Beneficial ended up paying out $484,000,000 for the first settlement

AUTHOR: Kati - (U.S.A.)

One more thing real quick...My state in my second post was listed as Kentucky. I must have clicked on the wrong state. I am from Iowa. Iowa also got a piece of that settlement that Angie, above, is speaking of.

In the settlement they agreed to curb their predatory lending and misleading practices. For the states included in the settlement, anyway. There is a class action suit against them right now through private attorneys as well. Unfortunately, since we were not able to participate in this new suit, I threw the letter away telling which firm is pursuing.

I can tell you that HFC/Beneficial ended up paying out $484,000,000 for the first settlement to the (I think it was) 5 midwest states. So for anyone who was not able to receive compensation through the first settlement you may be getting a letter in the mail or do some research online.
Kati
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#17 Consumer Comment

Minnesota stopped them

AUTHOR: Angie - (U.S.A.)

I was just reading some of the thing from my AG website. I came across this Household Finance Corp. The AG in Minnesota filed fraud charges against them, and they were ordered to pay the State of Minnesota 5.8 MILLION Dollars in restitution. Looks like Minnesota got rid of them, and now you have to deal with them. Let your AG know Monnesota ran them out of here, maybe with another fraud charge against them they can just go away for good. Glad you got something out of them.
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#18 Author of original report

HFC says " as a mortgage company they could not offer the same low rates as banks."

AUTHOR: Kati - (U.S.A.)

When I wrote the original Rip-Off Report two years ago, we were in dire straights. So because of the recent rebuttals, I decided to come back and give an update.

In December 2004 we received a settlement from HFC from their multi-state multi-million dollar class action suit. We received about $835 right before Christmas. This was little more than a house payment, but at least it was something.

Since the receipt of that payment, we have been sent notice of yet another class action suit against HFC that could award us with a lot more money. But having taken the first settlement, we cannot be party in this case.

Also, as I was rereading all the rebuttals up there, it occurred to me that the reason foreclosures were only %1 a couple years ago with HFC is because a moratorium was placed on the company. They could not (and may still not be able to) foreclose during all their legal problems.

So, what are we doing now? We are in the process of getting approved for a construction loan to renovate our home. At the end on construction, we will be refinancing our house through an actual bank for around 5% interest rate. Much better than the little more than 12% (I erred in my first post with the rate when I said 16%, sorry about any confusion) we have through HFC. (The average rate for Americans right now is 5.75%!!!!)

In the past two years, HFC has done nothing to try to rectify our situation with them. At one point we were so desperate for our payments to go down each month, that we called HFC again to see what could be done. We were told that if we extended our mortgage loan through them from the current 15 year note to a 30 year note, that it would save us a whopping $100 a month (up $50 from the last time we asked). No thanks. Our payments will be the same (with escrow included where it is not through HFC) AFTER our addition/remodel/renovation through a real bank as they are now with a major fixer upper home through HFC. Does that make sense to anyone?

So after two years of climbing up out of the financial hole we were in, scraping the bottom of the barrel...our credit is back to good. We paid off all other bills except our car payment, one low interest credit card payment, and our house payment through HFC. I did a lot of research about budgets, best bills to pay off first, etc. We have been abl to keep up on the HFC mortgage payment: here is how for those of you needing to find a way to afford your HFC payments:

I pay HFC once every week. So there is no "interest short." Not the full payment, but a portion of it so that at the end of each month I have paid the full amount as well as a little extra. By doing this, I now have equity in my home and every month I saw the balance dropping after about 2 months of doing this.

For instance, I have to pay $622 each month. I rounded that up to $650 that I try to pay to cover any hidden fees that HFC is so famous for (not fair, but I had to do something and I was only in control of this part of their "system"). I pay bills every Friday (I do a budget for all of our bills every 3 months). So for the month of February this is what I paid to HFC:

Feb 6: nothing to house-car payment instead
Feb 13: $150 to house
Feb 20: $325 to house
Feb 27: $150 to house
TOTAL: $625 to house this month, I wasn't able to pay the full $650 that I like to pay, but February is a short month.

Here is the second change I made: I pay online. www.householdfinance.com . Of course they charge me $7 each time I pay online, but it is worth it. Remember we are dealing with less than ethical and low moraled people here. They have not been able to dispute a payment with me since I began the onine payments. They have tried, but as soon as I tell them that I made the payment (on their own website) they shut right up. Then when the payment finally posts, it posts back to the date I paid online in the first place. You can use your cedit/debit card/checking/or savings account to pay online.

Third: Keep EVERYTHING!!! If I pay online, I print out my confirmation page and the email they send me to confirm. When I wrote checks, I kept the carbon (or cancelled check). Better yet, use money orders....keep the carbon. Keep this stuff for the entirity of the loan. This way they cannot dispute any payments you know you made.

So I will leave you with these final words:
As we are getting ready to get the HFC monkey off our backs, I am taken back to a conversation I had with the local HFC branch's office manager: When I asked him what the highest mortgage rate they had was (when real banks were at 5%) he told me 17%. I asked him how he slept at night knowing he was taking people's livelyhood. He said he slept just fine and that as a mortgage company they could not offer the same low rates as banks.

So I now ponder why? Why can't they offer the same low rates as banks? Geez, just go to a bank then. That's what we should have done. Hope you all have a scam free day.
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#19 Consumer Comment

Employees their responses makes me understand more

AUTHOR: Sue Ann - (U.S.A.)

Are there any employees of this company that can spell??????????? Just reading, or trying to, their responses makes me understand more about this company......a reputable company would hire employees that can, at least, spell.....you'd think......
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#20 UPDATE EX-employee responds

We would not straight out lie but definatly did not tell the whole truth.

AUTHOR: Rebecca - (U.S.A.)

I worked for Benificial for about 8 months as an accout Executive. I was the one calling everyone trying to get yu to refinance your mortgage with Beneficial. This is their game, plain and simple. They consolidate your high interest credit cards that would be paid off in 5 years into a 30 year mortgage. You cc bills may be 21% but pd in 5 years where as they tell you you are lowering you int rate to 16 or 18% (but don't tell you that you are extending the payments for 25 years. As far as the loan insurances, Our jobs were at stake if we didn't get them. We literally had to answer to the regional manager and get permission if a customer refused to take the insurances and were forbidden to go home at night if we didn't have enough loans mortgage applications for the day. We would not straight out lie but definatly did not tell the whole truth. We have families to raise and it is not right and that is why I don't work there anymore. I hope anyone still working there can live with themselves after doing the things management forces employees to do. There are other places to work. Don't give them your dignity!
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#21 UPDATE EX-employee responds

Clarifying the "restructure" program and Household is NOT good to it's honest employees!

AUTHOR: JG - (U.S.A.)

I am a former(of my choice)collections manager. To the employee who said Household is great and gave stats...well, I only can say one thing...who are those stats controlled by????

Household like any other corporation which does have many honorable, hardworking employees that are dedicated to serving the customer. It's unfortunate when the "bad apples" spoil the lot. I chose to leave because the division I worked in was unethical, hypocritical and retaliated on those of us who were honest!

In regards to "restructures," in cases where you signed up for ez pay or if the company randomly ran a collection restructure to reage your account, you were no longer delinquent but the money was still due in the balance of the loan. Further, the interest that was due in a closed end loan would not be put to the end of the loan, it would run the account "interest short." Application of future payment would then apply differently to the account and in many cases, customer's will never see their balances go down until they pay that interest short amount off. So, if you've had a restructure, you can a) write a complaint and send it to corporate office in Prospect Heights, IL and request that the amount that is interest short be waived or atleast the amount that has incurred since the restructure since you were not informed about that amount needing to be paid or b)call your branch office and ask what the amount due for the interest short is and pay it.

Good luck.
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#22 Consumer Comment

Great Company, Beneficial was always willing to help me out

AUTHOR: William Eddy - (U.S.A.)

I have been a customer with Beneficial Finance for around the past 12 years. I have took a two to three loans with the company and have been late on a couple of payments. Beneficial was always willing to help me out by letting me make half payments are letting me make a double payment the following month. If your going to be late with your payment make sure to call and let them know why and when you are planning on making the payment and you will find that Beneficial will work with. I have two accounts with Beneficial and HouseHold Bank and I'm very pleased with both of them.
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#23 Consumer Comment

resopnse to household employee

AUTHOR: Ted - (U.S.A.)

If your company is so above board why are they in so many class action lawsuits and losing them. recently in new jersey they settled with the dept of consumer affairs, regarding predatory lending and overcharges. SO PLEASE DONT GO ON ABOUT HOUSEHOLD BEING AND HONSET COMPANY, THEIR RECORD SPEAKS FOR ITSELF.
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#24 Consumer Suggestion

To The Employee of Household Finance

AUTHOR: Daphene - (U.S.A.)

Household may take care of their EMPLOYEES, but they do not take care of their CUSTOMERS!

The most recent class action law suit which was filed, and WON should prove that to you.

The reason WHY you have less than 100 complaints filed with the BBB is because your company PAID for MEMBERSHIP and yeah, you're gonna get a good report.

So, instead of relying upon a BBB report, what do you say we contact EACH State's ATTORNEY GENERAL, and the FTC and find out EXACTLY HOW MANY COMPLAINTS ARE REALLY OUT THERE?

You'd be reading for YEARS.
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#25 UPDATE EX-employee responds

ex collections employee of household/beneficial rebuttal back to employee who did the rebuttal

AUTHOR: christine - ()

i worked for household as a collections adjuster for beneficial finance at the call center in london ky until i and several others were terminated just before hh had to pay out the 484 million dollars in law suites in oct. to the employee you better get smart and read the news about household. to the customer you are absolutely right hh does screw you over and lie to you about the finance charges. anytime we resturtured a loan in the collections dept we took the rest of the deliq plus interest added it to the back of the loans which made the amount owed go up anytime you are late and have a resture done it raises the loan amount.. important tibit dont take a promo offer where they offer to lower your interest sure they do but they pull a payoff of old loan add interest to the loan plus the amount added previous so in the end you are paying more years and more money and sometimes the payments might not go down but a couple of dollars from the orginal amount.. my advise is to go ahead and get the acorn organization involved and the attorney general in your state.. because i have seen loans that was dated back to 1998 orginal amount loan was 3500.00 and still owe now in 2002 over 7800$ due to interest and been late and in collections plus having the loan restructured and doing the promos 560s they offerd dont refinance thru a promo offer or make one or two paymnets to restructure it makes it worst and you owe more in long run
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#26 Consumer Comment

bunch of theiving criminals!!!!

AUTHOR: Y - ()

HAF IS DEFINATELY ABUNCH OF LIARS THEY CLAIM TO BE THE COMPANY THAT TAKES CARE OF THEIR CUSTOMERS, BUT INSTEAD THEY ARE OUT TO GET US, SOME BODY NEEDS TO PUT THESE PEOPLE OUT OF BUSINESS ASAP!!!!
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#27 UPDATE Employee

HOUSEHOLD FINANCE IS A GREAT COMPANY

AUTHOR: JASON - ()

HFC HAS IS A GREAT COMPANY TO WORK FOR THEY HAVE ALWAYS TAKEN CARE OF THERE CUSTOMERS.. HFC HAS A 1% FORECLOSER RATIO..

IS THERE ANY OTHER COMPANY THAT CAN COMPARE.. THE REASONS THAT BALANCES DONT GO DOWN IS BECAUSE CUSTOMERS ARE NOT MAKING PAYMENTS IN A TIMELY FASHION.. IF YOU MAKE A 30 DAY PAYMENT EVERY 33 DAYS THE BALANCE WILL NOT GO DOWN..

HOUSEHOLD HAS ALWAYS TAKEN CARE OF OUR CUSTOMERS.. WE HAVE MILLIONS OF CUSTOMERS AND THERE ARE LESS THAN 100 COMPLAINTS ON FILE AND 90% OF CUSTOMERS RUN THERE BILLS BACK UP AFTER THEY CONSOLIDATE AND THEN THEY BLAME HFC FOR THAT.. IS IT HFC'S FAULT THAT WE ARE THE HIGHEST BILL..

WHEN HFC DOES A PROGRAM EVERYTHING IS DISCLOSED AND CUST HAVE 3 DAY RECISSION PERIOD TO LOOK OVER THERE PAPERWORK.. SO IS IT HFC FAULT THAT BALANCE DOES NOT GO DOWN OR IS IT THE CUSTOMER.

HFC HELPS MANY AMERICANS SAVE MONEY EACH MONTH AND IF THEY DO NOT RUN THERE BILLS BACK UP AND PAY THE LOAN AS AGREED THEY WILL GET A TAX RIGHT OFF AND PAY THERE BILL OFF 12 YRS SOONER THAN THERE ON MORTGAGE..

THIS IS NOT HFC FAULT THIS IS CUSTOMERS FAULT.. IF YOU HAVE FOUND THAT HFC HAS DONE ANY WRONG DOINGS THAN CONTACT ADDITIONAL HELP BUT DONT TRASH HFC BECAUSE YOU HAVE NOT MADE YOUR PAYMENTS ON TIME AND YOU ARE LOOKING FOR A WAY OUT.
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#28 0

Some legal interests

AUTHOR: - ()

After I wrote the original report, I searched the net to find a place that could help me. I came across ACORNs website and emailed them with my story. (Which BTW has just gotten progressivly worse all the time) They in turn asked to forward my email to the Attorney General's office here in Iowa. I agreed. The A.G. then emailed me and I am sending her copies of my loan papers tomorrow so she can see if they have done anything illegal. To all who have been used and abused by Household or any of their subsidiaries, parents company, or sister companies; please contact your local government agancy (Consumer Affairs) and maybe they will be stopped. The mental and financial anguish alone is worth it for me to try to get something done about Household, as I don't want to see another person go through what I have gone thru. Also, make sure you tell your family and friends about what they have done to you and others.
Notice that not a single emplyee (that I have read anyway) has rebutted any of the reports on here. If it was my company, I would want to explain. One more thing, I gave the A.G. this website to look at to see that it is not just me......anyone in Iowa that has had problems with Household, contact the Attorney General NOW as she will be looking into this soon.
Good luck to all!
Kati
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