In retrospect those who settled with Household International on charges of predatory lending would have done it differently. No doubt exists that Household’s predatory lending settlement was a guideline for the Ameriquest settlement. Both were accused of predatory lending. Both were involved with people’s real estate loans, either as primary predators or second mortgage predators.
Many have stated that Household’s settlement was a joke. Such statements infuriate those who negotiated the settlement. Other think Household International would have self destructed on their own, but a $484 million bite out of earnings was well deserved by William Aldinger and his team of predators. Still others say earnings were huge compared to a $484 million dollar settlement. Ameriquest paid less than Household International and now runs television commercials which tell the public ‘Don’t judge so quickly’ - a theme not echoed by those who lost their homes. While foreclosure might happen to anyone, even outside the predatory lending arena, it is traumatic and causes one to be upset with themselves, personal circumstances, and lenders.
Perhaps this statement should be on all Household International, HSBC, and Ameriquest paperwork: “We specialize in lending in a manner that pushes the law to the limit. Our team of legal experts has examined our contracts with you the borrower. We shall and always will be the experts, free from challenge and always right. You shall always remain a novice regardless of who you are, what you know, or how much education you have. The borrower has no right to our professionalism, honesty, or integrity, either expressed or implied. We deny any wrong doing but settled charges of predatory lending and thus agreed to do what we should have been doing in the first place. However, if your FICO score reveals that you cannot make problems for us we reserve the right to discriminate against you again.”
Put it in 14 point bold font, on the bottom of every piece of paper printed for HSBC and Ameriquest. Then, and only then, would Household International have been too expensive for HSBC. Ameriquest would have thought about how they were hurting others. Bankruptcy and criminal records follow Americans for years. Registered sex offenders are registered for life. Why shouldn’t corporate criminal records be the same way?
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Will HSBC buy Ameriquest? See our new speculative report:
http://householdwatch.com/logic/ameriquest.php
State attorney’s general said they couldn’t fine Household International more than $484 million without risking the solvency of the company. Was $325 million too much for Ameriquest? Interest rates are rising, creative home loans are getting bad press, brokers are subject to spot inspections and Ameriquest now has a black eye. Will HSBC buy the scraps when the machine is stripped? It would be a nightmare if HSBC Finance Corporation gets their predators involved with existing loans.