Finance company agrees to pay $484 million in lending case

SACRAMENTO, CALIFORNIA - Household International Inc., one of the nation&#39;s largest lenders, will pay $484 million to settle allegations it cheated consumers on home loans, officials said. <br> <br> The settlement includes $90 million to California. An announcement by state officials from nearly two dozen states, including Georgia, was planned for later Friday in Chicago, said the office of Gov. Gray Davis. <br> <br> The company is accused of overcharging borrowers on home equity and similar loans in what California officials called a ``pervasive pattern of abusive lending practices.&#39;&#39; <br> <br> Household International, based in the Chicago suburb of Prospect Heights, Ill., is the parent company of the Household and Beneficial finance companies. <br> <br> In a statement Friday morning, Household said it would hold a midday conference call with reporters ``to discuss the resolution of certain regulatory issues.&#39;&#39; <br> <br> For California, the company agreed to deposit $90 million in a state restitution fund to be distributed to borrowers who can prove they were overcharged by Household International on home equity and similar loans. <br> <br> The payment will settle the company&#39;s alleged unfair business practices, officials said. The company settled a narrower complaint with California in January, agreed at that time to pay the state $12 million to settle alleged violations of state lending laws and regulations. <br> <br> Subsequent settlements with the state of Washington and elsewhere led to the nationwide settlement, officials said. <br> <br> Household refunded $3 million to California consumers and paid $9 million in penalties to the state in January to settle allegations it deliberately overcharged an estimated 60,000 California customers. <br> <br> That included $1.5 million Household paid in June 2001 for what the department called a <br> <br> Household at the time attributed some of the problems to the parent company&#39;s acquisition of its Beneficial subsidiary, and denied the overcharges were intentional.