Is there prepayment penalty relief?
Under the terms of the settlement, Household has unilaterally modified its prepayment penalty provisions. Any prepayment penalty provision now existing in any Household or Beneficial real estate secured loan made on or after January 1, 1999 will now be in effect only for the first 24 months of the real estate secured loan regardless of what the loan documents say. Household and Beneficial notified borrowers of changes to the prepayment penalty provision in their loans in February 2003.
