Household Cuts Fees Under Pressure

Household International Inc. said that it would cut fees and reduce interest rates for mortgage borrowers, countering charges by consumer advocates that it engages in unfair lending practices.

Sheila Bair, assistant secretary for financial institutions at the Treasury Department, praised the decision by Household, a leading lender to consumers who have patchy or poor credit histories.

But representatives of the Assn. of Community Organizations for Reform Now downplayed the Prospect Heights, Ill.-based company’s moves.

“It is interesting they keep denying they’ve ever done anything wrong with their lending. But their continuing public relations efforts are an acknowledgment that that is not the case,” Lisa Donner of the community group said.

The group earlier this month filed suit against Household, accusing it of overcharging borrowers in California. Household denied the suit’s allegations.