GE Money Slow to Disperse Debt Collection Penalties

GE Money, a unit of U.S.-based General Electric and the largest consumer lender in Australia, has been slow to pay out penalties levied against it due to its collection practices, according to an Australian paper.

In May, the Australian unit of GE Money was rebuffed by the Australian Securities and Investments Commission (ASIC) over its debt collection tactics. Under the agreement, GE Money was to monitor and overhaul its collection unit and pay compensation to customers that were impacted (“Australia Slaps GE Money’s Debt Collection Practices,” May 22).

But the company has yet to pay out any of the consumer compensation, according to The Age, a newspaper based in Melbourne. The paper said that at least 2,000 consumers were due to receive payment under the ASIC agreement.

A spokesman for GE Money conceded to the paper that he was unsure when the first payments would go out. He said that the company was in the process of compiling a list of affected customers and that it was not sure how many would be on the final list.

The company did note that it had hired Ernst & Young compliance advisory practice leader Rob Walsh as an independent consultant to review and make recommendations regarding GE Money’s debt collection practices, per the ASIC agreement. Walsh has a deadline of August 22 to submit a report to the company.

GE Money is a major bank partner of many private label retail credit cards in Australia as well as a financing partner of many major auto companies, such as Honda.