ASIC rule on GE
(26 May 2008 – Australia) The Australian Securities and Investment Commission have ruled on the harassment to borrowers by employees of GE Money.
The ruling comes amid accusations that GE harassed borrowers by contacting them at their workplaces and making late night visits to their homes.
ASIC has restricted GE Money’s financial services licence after the group failed to comply with earlier requirements imposed by the watchdog in 2006.
ASIC found that GE Money's Hallmark General Insurance Company and Hallmark Life Insurance Company had failed to comply with enforceable undertakings set by the regulator in 2006.
GE Money spokesman Geoff Lynch said the group had been working with ASIC on improving its debt collection procedures for a couple of years.
ASIC's investigations revealed the group's debt collectors had made excessive or inappropriate contact with customers. This will expectedly result in more than 1000 defaulting borrowers of GE Money receiving compensation payments.
ASIC also described the Hallmark insurance businesses owned by GE Money as poorly managed.
The watchdog said GE Money had also unnecessarily and unreasonably contacted third parties of borrowers, including neighbours, work colleagues and family members.
GE Money was accused of calling some defaulting borrowers 100 times in a month and, in some cases, calling ten or more times in a single day.
ASIC has restricted GE Money’s financial services licence after the group failed to comply with earlier requirements imposed by the watchdog in 2006.
ASIC found that GE Money's Hallmark General Insurance Company and Hallmark Life Insurance Company had failed to comply with enforceable undertakings set by the regulator in 2006.
GE Money spokesman Geoff Lynch said the group had been working with ASIC on improving its debt collection procedures for a couple of years.
ASIC's investigations revealed the group's debt collectors had made excessive or inappropriate contact with customers. This will expectedly result in more than 1000 defaulting borrowers of GE Money receiving compensation payments.
ASIC also described the Hallmark insurance businesses owned by GE Money as poorly managed.
The watchdog said GE Money had also unnecessarily and unreasonably contacted third parties of borrowers, including neighbours, work colleagues and family members.
GE Money was accused of calling some defaulting borrowers 100 times in a month and, in some cases, calling ten or more times in a single day.
Subscribe