Household Accused of Misleading Borrowers
Bloomberg News
Household International Inc. was accused in a lawsuit of misleading borrowers about the terms of at least $45 billion in loans.
Household and its subsidiaries engaged in fraud over the last three years, the Assn. of Community Organizations for Reform Now alleges. The suit, filed in Illinois state court, said Household targets homeowners saddled with debt.
In a statement, Household said the accusations are baseless.
ACORN sued Household in February on behalf of the lender’s California customers. The suit seeks to invalidate as much as $2 billion in loans issued to tens of thousands of borrowers in the last four years.
Household shares fell 27 cents to $57.43 on the NYSE.
