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Posts Tagged ‘consolidating all debts’

Once again GE Money, the consumer Finance company by General Electric is in the news. This time it seems they’ve breached the Fair Trading Act.

In an effort to make their deals sound sweeter they’ve made false misrepresentations in their radio and print advertising campaign. The campaign is aimed at luring (inviting) us all into a debt consolidation loan. This loan was aimed at consolidating all debts into one loan with seemingly lower weekly repayments.
This campaign was snapped up by the Commerce Commission as misleading conduct as it made false representations.

Graham Gill, competition manager at the commission said that 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

GE Money admitted to breaching the Fair Trading Act, as they were not able to give evidence that any of the customers depicted were any better off financially after taking up the debt consolidation loan that was targeted at improving their financial woes.

As a consequence of this campaign GE Money will donate $60,000 to the New Zealand Federation of Family Budgeting Services. Aren’t all donations tax deductible?

Those poor people stuck paying back extra money. If only they knew this earlier.

GE Money willingly co-operated and admitted that they were in the wrong.

Read the full news article here