Sharechat Logo

GE Money to pay $60,000 after admitting to Fair Trading Act breach

Monday 19th December 2011 2 Comments

Text too small?

GE Money, the consumer finance company ultimately owned by General Electric, will make a $60,000 donation to the New Zealand Federation of Family Budgeting Services after admitting to a breach of the Fair Trading Act.

The Commerce Commission found GE’s direct mail, print and radio advertising campaign inviting consumers, consolidating their loans into one new loan to be repaid over a longer period of time, engaged in misleading conduct and made false representations.

“Analysis of the finances of the real-life customer used in print advertising showed that while monthly payments were initially reduced, they were substantially higher than the original loan repayments for the majority of the 60 month loan periods,” said Graham Gill, competition manager at the commission.

GE admitted to the breach after it was unable to supply the commission with evidence customers were substantially better off taking up the loan offer, Gill said.

“GE cooperated fully with us, promptly recognised its wrongdoing and reached a satisfactory settlement,” he said.

Both parties agreed the Federation was an appropriate organisation to receive the donation.


  General Finance Advertising    

Comments from our readers

On 20 December 2011 at 10:11 am peter said:
GE Money being dishonest? Not a surprise. The surprise is that they were not prosecuted. The Commerce Commission has not been so light handed with others.
On 20 December 2011 at 10:30 am Ken said:
So why did GE money not be made to pay the money to those overcharged instead???? Where's the logic!!!
Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report
PGG Wrightson Limited (NZX: PGW) Guidance Update
Vital Limited (NZX: VTL) Provides Update on PSN LMR
18th October 2021 Morning Report