This is the worst form of abuse. For many working people, their house is the most significant part of their wealth. To watch people mortgage their homes at unfavorable terms is a frightening prospect. As a union with many moderate income members, particularly retirees, we know that many of our members are at risk, as well. In particular, the practices of Household Finance have come to our attention.
Household engages in a variety of deplorable practices.
They also give some borrowers an open line of credit mortgaged against their house, where even if they make their monthly payments the principal is never reduced. We have found out that one of our money managers for the Pension Fund has holdings in Household. It is a troubling irony that our retirement fund monies are invested in a company dedicated to essentially stealing money from our retirees. We will be requesting the Pension Board to divest itself of Household stock at the earliest opportunity.