More than 19,000 New Jersey borrowers who obtained real estate loans through Household Finance or Beneficial Finance between January 1, 1999 and September 30, 2002 are eligible to receive part of a $17.7 million settlement payment made by Household International to the State. Household Finance and Beneficial are subsidiaries of Household International. The settlement payment is part of a record-breaking, $484 million agreement between Household, the 50 states and the District of Columbia that, along with reforms being implemented by the company, resolves allegations that prior Household practices violated laws pertaining to licensed lenders and consumer fraud.

New Jersey was among 19 states who coordinated a nationwide, multi-state investigation into the lending practices of Household starting in the spring of 2002. That investigation led to the settlement agreement involving all 50 states and the District of Columbia. Based on a formula devised by the State, the average Household or Beneficial borrower impacted by the settlement in New Jersey is eligible for $885. The maximum amount that borrowers in New Jersey are eligible for is $9,939. Based on the state-devised formula, all eligible borrowers will be offered at least $150. According to Attorney General Peter C. Harvey, New Jersey borrowers who obtained mortgage loans directly from Household or Beneficial during the time period at issue should look in the coming days for a postcard mailer advising them of their eligibility to receive a share of the Household payment.

The postcards were to be mailed on Aug. 8. Shortly thereafter, eligible New Jersey consumers should have received a letter bearing the State seal that will detail the minimum amount of the Household payment available to them. The letter will be accompanied by a release that consumers must sign and return in order to claim their share of the settlement. Additional information on the Household agreement is available by clicking on the Frequently Asked Questions heading on this page. A copy of the Consent Judgment between the State and Household is also available.