GE Money fined $1.5m for misleading statements to 700,000 customers

By Michael Janda

“[It] was a systematic and deliberate attempt to mislead cardholders into giving their consent to receive invitations for future credit increases so as to avoid losses of up to $6 million which were projected to be suffered by GE Capital as a result of the tightening regulatory environment”. In addition to the $1. 5 million fine, GE Money was ordered to send notices advising the 700,000 affected card holders of the effect of the decision, and pay $50,000 in legal costs to ASIC.

The Australian Securities and Investments Commission (ASIC) took action against GE Capital Finance Australia, which trades as GE Money, for telling many of its customers that to activate their cards or apply for a credit limit increase, they had to consent to receiving invitations to raise their limit.

Read more here: ABC


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