Washington borrowers have received refund checks totaling just over $586 thousand from Household Finance Corporation (HFC) and Beneficial Washington, Inc. (Beneficial Finance). The Consumer Services Division of the state Department of Financial Institutions uncovered violations of the state's Consumer Loan Act during a routine examination of the companies performed last year. The violations were technical in nature and resulted from flaws in the companies’ computer systems.
An internal audit prompted by the examination found 3100 accounts in Washington in which refunds were due, with the borrowers receiving refunds located throughout the state. Household refunded $162,189.27 to 851 borrowers. Beneficial refunded $424,089.29 to 2,249 borrowers. The refund checks sent out at the end of last month ranged in size from less than one dollar to $782.
The companies are refunding overcharges resulting from new loans or increased credit lines for previous borrowers. Although the state's examination cited only non-real estate accounts, the companies are voluntarily conducting internal audits to identify all affected real estate (second mortgage) accounts, as well. Refund checks found to be due to borrowers in this second round of audits are expected to be sent out by May 31.
The companies will provide a complete accounting of the second round of refunds to the Consumer Services Division once the refunds have been issued.
HFC and Beneficial Finance are both subsidiaries of Household International, Inc.