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Frequently Asked Questions re: the Household Settlement
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Frequently Asked Questions re: the Household Settlement
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Frequently
Asked Questions
- What is this Settlement about?
- What is the total Settlement fund for Hawaii?
- What is Hawaii's Settlement Plan?
- Am I eligible to recieve restitution?
- How much restitution will I receive?
- What do I need to do to participate in
the Settlement?
- What is the deadline for returning my Release
Form?
- Why do the Release Forms mention a "Minimum"
payment?
- I live in Hawaii. Why do I have to mail
the Release to Portland, Oregon?
- Can the Release Form be sent or faxed
to the Department of Commerce and Consumer Affairs instead of
to the Settlement Administrator?
- When will I receive my payment?
- Can you give me advice on whether I should
sign the Release or participate in the Settlement?
- Will I have to pay taxes on any Settlement
payment I receive?
- Why does the release form ask for Phone
Number and E-mail Address?
- Can I still sue Household or Beneficial
if I participate in the Settlement?
- What if my home is in Foreclosure?
- If I participate in the Settlement, do
I have to continue making payments on my loan?
- What if I dont want to participate in
the Settlement?
- How can I check on the status of processing
my Release?
- If I had a co-borrower on my loan, do
we both need to sign the Release Form?
- What if I cannot get my co-borrower's
signature, due to circumstances such as divorce, separation or
estrangement?
- I am the Guardian or the Executor of the
Estate of a Person that has been sent a Release Form for this
Settlement. How should the form be completed?
- Why did I receive more than one Release
Form?
- I lost my Release Form. Can I get a replacement?
- I have not received my Release Packet,
but think I am eligible to participate in the Settlement. What
should I do?
- What if my loan is not a Real Estate Secured
Loan (For example, a Credit Card Loan), or if I obtained my Real
Estate Loan either before January 1, 1999 or after September 30,
2002? Can I still be included in this Settlement?
- Will I receive any benefits if I choose
not to participate in the Settlement?
- Will my information be kept Confidential?
- How can I protect my confidential information?
- I still have some questions. Who can I
contact?
Answers
- What is this Settlement about?
On December 16, 2002, the Hawaii Department of Commerce and Consumer Affairs and Household International,
Inc. filed a stipulated judgment in the First Circuit Court of the State of Hawaii as part of a $484,000,000
nationwide settlement with Household International, Inc., and its related companies: Household Finance Corporation,
Household Realty Corporation, and Beneficial Corporation. The nationwide settlement includes all 50 states and the
District of Columbia and stems from an investigation into allegations of unfair and deceptive mortgage lending
practices by these companies. This settlement will provide partial relief to borrowers in connection with real estate
secured loans obtained from Household or Beneficial.
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- What is the total Settlement fund for Hawaii?
The nationwide Settlement fund of $484,000,000 has been divided among the 50 states and the District of Columbia based
on the total dollar amount of the real estate secured loans made in each State. Hawaii's settlement fund is $2,100,561,
plus interest. It will be distributed to eligible borrowers who participate in the settlement, in accordance with Hawaii's
settlement plan.
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- What is Hawaii's Settlement Plan?
There are approximately 2,800 Hawaii consumers who are eligible
to
participate in the settlement. All eligible consumers will
receive a minimum of $25. The remainder of the settlement money
will be divided among eligible consumers based upon the relative
harm they experienced from deceptive lending practices relating
to
the points and fees charged for their loan, as well as additional
harms associated with getting loans for more than the value of
their homes and the purchase of various types of insurance.
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- Am I eligible to recieve restitution?
Hawaii is offering restitution to consumers who obtained loans
directly from Household or Beneficial between January 1, 1999
and
September 30, 2002 and that were secured by a deed of trust against
the
consumer's home (meaning that the loan was a "mortgage loan"
or a
"home equity line of credit"). Eligibility does not
depend on
whether the loan is still open or has been paid off. All real
estate secured loans that fit these criteria are eligible.
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- How much restitution will I receive?
Hawaii, like each of the other States, has developed its own plan
for distributing the Settlement funds it received. The minimum
payment you are eligible for is on the Release Form you received
with the notice letter. You may get more than this amount, depending
on the number of borrowers in Hawaii who decide to participate
in the Settlement, but you willnot get less than this minimum
amount.
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- What do I need to do to participate in the Settlement?
Consumers eligible to participate will receive a letter and form
titled "Release and Agreement to Participate in
Household/Beneficial Settlement" from the Hawaii Department
of
Commerce and Consumer Affairs. It is each consumer's
choice whether to participate in the settlement, and consumers
may
wish to consult a private attorney before making that decision.
To
participate, consumers need only fill out, sign and return the
Release form in the postage pre-paid envelope by October 14, 2003.
NO CONSUMER WILL RECEIVE ANY PAYMENT UNDER THIS SETTLEMENT UNLESS
HE OR SHE SIGNS AND RETURNS THIS FORM. Consumers should retain
the "borrower copy" of the Release Form for their own
records.
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- What is the deadline for returning my Release Form?
The Release Form must be mailed back to the Settlement
Administrator by October 14, 2003. Forms mailed after this date
may not be accepted.
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- Why do the Release Forms mention a "Minimum" payment?
Our estimate of the amount of restitution consumers may receive
under the Settlement is based on the assumption that all eligible
consumers will decide to participate. However, some consumers
may
choose not to participate in this Settlement. Consumers who choose
not to accept the Settlement will not receive any money, and the
funds that had been allocated to them will instead be divided
among consumers who do decide to participate. Also, the funds
that
will be distributed to consumers are currently being held in
trust, and interest that accrues on those funds may also be
available to be distributed to consumers. Therefore, it is
possible consumers might receive slightly more than the "minimum
amount" listed on the Release Form sent to them by the Settlement
Administrator. However, this is not guaranteed, nor is the State
able to estimate the amount of additional funds, if any, that
might be available. When deciding whether to participate in the
Settlement, consumers should assume they will be receiving only
the minimum amount specified on the Release Form.
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- I live in Hawaii. Why do I have to mail the Release to Portland,
Oregon?
The company that has been hired to administer the Settlement on
behalf of Hawaii and the rest of the country is based in
Oregon.
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- Can the Release Form be sent or faxed to the Department of Commerce
and Consumer Affairs instead of to the Settlement Administrator?
No, the signed Release Form must be returned directly to the
Settlement Administrator at the address listed below and printed
on the postage-paid return envelope provided with the cover letter
and Release Form. The Settlement Administrator must receive the
original signature on the Release Form, so it must be mailed,
and
cannot be faxed.
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- When will I receive my payment?
Because this Settlement involves hundreds of thousands of
consumers across the country, it will take some time to process
all Release Forms. If everything goes as planned, payments will
be
mailed by the end of December 2003.
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- Can you give me advice on whether I should sign the Release
or participate in the Settlement?
The Department of Commerce and Consumer Affairs is not able to
give you legal or other advice on this matter. If you would like
advice, you should consult a private attorney.
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- Will I have to pay taxes on any Settlement payment I receive?
Some consumers may receive an IRS Form 1099 with their Settlement
payment. However, whether any restitution you receive is taxable
will depend on several factors. If you have tax questions, you
should contact a local tax preparer or advisor.
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- Why does the release form ask for Phone Number and E-mail Address?
Some consumers may receive an IRS Form 1099 with their Settlement
payment. However, whether any restitution you receive is taxable
will depend on several factors. If you have tax questions, you
should contact a local tax preparer or advisor.
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- Can I still sue Household or Beneficial if I participate in
the Settlement?
By choosing to sign the Release Form and participate in the
Settlement, a consumer will be giving up the right to sue
Household or Beneficial regarding his or her real estate secured
loans. However, this release does not become effective until a
consumer actually receives Settlement funds. Also, if consumers
who participate in the Settlement are currently in, or are later
threatened with, foreclosure, they can sue Household or Beneficial
for the limited purpose of trying to prevent that foreclosure.
Consumers who have questions about this should consult with a
private attorney before deciding whether to participate in the
Settlement.
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- What if my home is in Foreclosure?
Participating in the Settlement and receiving a payment will NOT
stop or undo a foreclosure. If you choose to participate in the
Settlement, you must sign and return the Release Form. In doing
so, you give up various legal rights (listed on the Release Form),
but you do not give up your right to raise any rights and defenses
in a foreclosure action. You should contact a private attorney
about your situation before deciding whether to participate in
the
Settlement.
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- If I participate in the Settlement, do I have to continue making
payments on my loan?
Yes. The Settlement does not affect the status of your loan or
release you from any payment obligation for any open loan with
Household or Beneficial. You must continue to make your loan
payments under the terms of the loan agreement.
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- What if I dont want to participate in the Settlement?
Do not complete the Release Form. Nothing else is required. By
completing a Release Form, you agree to participate in the
Settlement. If you do not return a signed Release Form, you will
automatically be excluded from the Settlement and will not receive
a Settlement payment.
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- How can I check on the status of processing my Release?
You can contact the Settlement Administrator at the phone number
or e-mail address listed below. Please wait one week from the
time
you return your Release Form before contacting the Settlement
Administrator to see if it has been received.
Also, the Settlement Administrator will contact you if there
are
any questions or problems with your Release Form.
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- If I had a co-borrower on my loan, do we both need to sign the
Release Form?
Yes. Each person who signed the original loan documents must sign
the Release Form in order to receive payment. If there is more
than one borrower on the loan, the Release Form will not be valid
with only one signature. If there is more than one borrower,
payment cannot be made to one or another of the co-borrowers,
but
must be made to all, assuming they all available to sign the form.
Please read numbers 18, 19 and 20, below, for additional
information regarding loans with co-borrowers.
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- What if I cannot get my co-borrower's signature, due to circumstances
such as divorce, separation or estrangement?
If you've made every effort to obtain the co-borrower's signature,
but cannot get it due to extenuating circumstances, you must sign
and send in the Release form yourself, and provide a letter
explaining why the co-borrower signature's cannot be obtained.
Your letter will be reviewed, and you will be notified if it is
accepted or rejected, or if further information is necessary.
If
your explanation in your letter is accepted, payment will be made
to you alone (without the other borrower's name appearing on the
check).
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- I am the Guardian or the Executor of the Estate of a Person
that has been sent a Release Form for this Settlement. How should
the form be completed?
Sign and date a letter explaining the circumstances and attach
the
letter to the Release Form, along with photocopies (please do
not
send in original legal documents) of any other legal documentation
showing you as the guardian or executor of the estate of the
person who received the Release Form. Send the letter, copies
of
documents and Release Form to the Settlement Administrator, along
with the address where payment should be sent, before October
14,
2003. Your letter will be reviewed, and you will be notified if
it
is accepted or rejected, or if further information is necessary.
If your submission is accepted, payment will be made payable to
"The Estate of (claimant name)."
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- Why did I receive more than one Release Form?
Consumers who have more than one real estate secured loan with
Household or Beneficial, but obtained one loan individually and
the other(s) with a co-borrower, or had different co-borrowers
on
the loans (for example, a spouse was the co-borrower on one loan
and a brother or sister was the co-borrower on a second loan),
will receive separate Release Packets for each loan. These
consumers must sign and return each Release form included in each
separate Release Packet in order to receive a payment on all
covered loans. If there is a problem with getting a co-borrower's
signature, please follow the procedure described above. Make sure
you keep the borrower's copy of each Release Form.
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- I lost my Release Form. Can I get a replacement?
Yes. If you were part of the original mailing, the Settlement
Administrator can arrange to have another letter and Release Form
sent to you.
You can contact the Settlement Administrator toll-free at
1-888-780-2156, on the internet at
http://www.household-beneficial-settlement.com, or by e-mail
at
info@household-beneficial-settlement.com or you can write:
Household-Beneficial Settlement Administrator, PO Box 3775,
Portland, Oregon 97208-3775.
After confirming your eligibility to participate, the Settlement
Administrator will send you another Release Form as soon as
possible.
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- I have not received my Release Packet, but think I am eligible
to participate in the Settlement. What should I do?
The Release Forms and letters are due to be mailed on August 15,
2003.
If you think you are eligible but have not received a packet
by August 30, 2003, contact the Settlement Administrator at the
phone number, address, or e-mail address below. Be sure to include
your full name, the names of any co-borrowers, your address, your
phone number and, if available, your loan or account number(s).
The Settlement Administrator will notify you whether you are
eligible to participate in the Settlement.
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- What if my loan is not a Real Estate Secured Loan (For example,
a Credit Card Loan), or if I obtained my Real Estate Loan either
before January 1, 1999 or after September 30, 2002? Can I still
be included in this Settlement?
The Settlement only covers real estate secured loans (i.e.
mortgage loans or home equity loans) that were obtained from a
Household or Beneficial retail-lending branch and entered into
between January 1, 1999 and September 30, 2002. For example, if
a
consumer obtained one mortgage loan from Household in August of
1997 and another in August of 2000, only the August 2000 loan
would be eligible for restitution under the Settlement.
Additionally, mortgage loans not obtained directly through
Household or Beneficial, but that were sold or transferred to
Household or Beneficial after the consumer obtained the loan
from
a different lender are not covered under the Settlement and
are
not eligible for restitution.
Also, personal loans (meaning loans that are not secured by
the
consumer's home), car loans, or credit card accounts with
Household or Beneficial are not covered under the Settlement
and
are not eligible for restitution.
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- Will I receive any benefits if I choose not to participate in
the Settlement?
Yes. Even if you choose not to participate in the Settlement,
if
you have a mortgage loan that you obtained from Household or
Beneficial between January 1, 1999 and September 30, 2003 that
includes a prepayment penalty, the term of that prepayment penalty
is automatically shortened to two years, despite what the contract
says - provided your loan was still outstanding as of December
12,
2002. Household was required to notify consumers of this change
by
no later than the end of February, 2003.
If you will benefit from this waiver, and wish to refinance,
be
careful. Be sure you don't save yourself thousands of dollars
on
your waived prepayment penalty only to spend it on up-front
costs
on a new loan. Be sure that any refinancing will benefit you
economically in the long run.
Additionally, some consumers found themselves not making progress
on reducing loan principal because of the way Household calculated
interest. The "interest short" is now being calculated
differently,
in a way that will save you money. This applies to all consumers,
even those who choose not to receive restitution under the Settlement.
(Return to top of page)
- Will my information be kept Confidential?
Yes. The Settlement Administrator will protect the privacy of
all
information provided by you or Household or Beneficial. This
information will be used only to administer this Settlement.
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- How can I protect my confidential information?
To be sure that you only provide information to the proper
Settlement Administrator, send your information by mail to the
address below, and only contact the Settlement Administrator at
the phone number, e-mail address and web site listed below. The
Settlement Administrator will never use a different phone number,
address, or web site address, and also will never ask you to send
any money to any address in order to participate in or receive
any
information about the Settlement. Do not provide confidential
information to anyone who calls you and claims to be the
Settlement Administrator, or to anyone who requests that you send
confidential information or money to any other address, phone
number or web site. If anyone does call you and claim to be the
Settlement Administrator, or asks you to send confidential
information or any money to any other address or web site or
e-mail address, do not do so. Instead, immediately report this
to
the Hawaii Office of Consumer Protection at
http://www.hawaii.gov/dcca/ocp/forms.html.
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- I still have some questions. Who can I contact?
If you have additional questions regarding this Settlement,
contact the Settlement Administrator by phone, toll-free at
1-888-780-2156, on the internet at
http://www.household-beneficial-settlement.com, or by e-mail at
info@household-beneficial-settlement.com. You also can write to
the Settlement Administrator at:
Household-Beneficial Settlement Administrator
PO Box 3775
Portland, Oregon 97208-3775
If you write or send e-mail to the Settlement Administrator,
be
sure to include your full name, street address, city, state
and
zip code. If you have received a letter from the Settlement
Administrator, also include the identification number, which
is
printed on the Release Form below the bar code and above your
name. If you received more than one letter because you had loans
from Household with different co-borrowers, include the
identification number for the loan(s) about which you have
questions.
Please contact the Settlement Administrator directly, rather
than
the Department of Commerce and Consumer Affairs.
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