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The Honolulu Advertiser

Posted on: Tuesday, December 23, 2003

BUSINESS BRIEFS
Settlement checks mailed

More than 2,000 Hawai'i consumers have been sent checks from a state settlement with Household and Beneficial Finance.

Hawai'i joined several other states in alleging that the mortgage lender overcharged borrowers in fees and interest and misled them regarding loan terms. Household agreed to pay $484 million, the largest dollar settlement of a consumer-protection case.

The checks, ranging from $25 to more than $14,000 and totaling more than $2 million, represent the state's share of the multistate settlement.

For more information, call 586-2636.


Kaua'i utility completes deal

Kaua'i's electric company, the Kaua'i Island Utility Cooperative, has completed the purchase of its largest source of power, the 26.4-megawatt Kaua'i Power Partners plant outside Lihu'e.

The purchase was approved by the state Public Utilities Commission in November.

Utility board chairman Gregg Gardiner said owning rather than buying power from the plant will save the company about $40 million over 25 years. The naphtha-fueled plant produces about 40 percent of the utility's power.


Be cautious of Yellow-Page.net

The Better Business Bureau of Hawaii is warning companies about Yellow-Page.net of Boulder City, Nev.

The Mainland company sends what looks like a check for $3.50 made out to local businesses, the BBB said. If the check is cashed, endorsed or returned, the business will be automatically signed up for a Web directory listing service and charged a $21.95 monthly fee.

To check on the reliability of any company, call the BBB at 536-6956.


Study scrutinizes mortgage giants

Fannie Mae and Freddie Mac enjoy huge subsidies from the federal government, but those benefits translate into only a tiny drop in the mortgage rates paid by home-buyers, a Federal Reserve economist has concluded.

The Fed study calculated that Fannie and Freddie, the two government-sponsored corporations which are the biggest players in the nation's multitrillion-dollar mortgage market, receive a government subsidy of between $119 billion and $164 billion.


— Staff and news services