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News Release: 01-14
GRAY DAVIS, Governor
Date: 06/19/01
DEMETRIOS A. BOUTRIS, Commissioner
Corporations Delivers $1.5 Million for Consumers
Routine Examinations Result in Significant Refunds
Sacramento, June 19, 2001 — The Davis Administration announced today that the Department of Corporations has compelled two consumer finance lenders to refund over $1.5 million to customers as a result of irregularities discovered in routine examinations.
"The accountants and lawyers at the Department of Corporations are often the last line of defense for California consumers in the financial marketplace," said California Corporations Commissioner Demetrios A. Boutris. "I commend the good professionals in the Department’s Financial Services Division for their vigilance on behalf of our state’s credit consumers. Furthermore, both Beneficial California, Inc., and Household Finance Corporation of California deserve praise for their commitment to fully refund their customers by the end of the month."
As a result of company-wide examinations performed on Beneficial and Household by the Department of Corporations, the Illinois-based companies were discovered to be committing violations including but not limited to excessive administrative fees, excessive late charges and improperly charging borrower prepayment penalties. The Department expects that Beneficial and Household will refund approximately $1.1 million and $430,000, respectively, to consumers.
The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov.
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