Household Finance Corp.

Quebec, Canada: (Apr-24-07) Option Consommateurs, a local consumer group, filed a class action lawsuit against Household Finance Corp., accusing them of having overcharged credit card holders late payment fees between May 1996 and December 1999, asserting that the unexpected surcharges were excessive and harsh. Justice Maurice Laramee found that $10 penalties for late payments charged by HFC subsidiary Merchant Retail Services Ltd. were in violation of the province's Consumer Protection Act because they weren't disclosed in advance and made the real credit rate higher than advertised. The Supreme Court of Canada has upheld the largest exemplary damages ever awarded in Quebec, ordering Household Finance to reimburse 25,000 store credit card holders the excess amounts charged, bringing the total payout figures to $5 million, including interest and other court costs. [MONTREAL GAZETTE: LATE PAYMENT FEES SETTLEMENT]