19 Dec 2011

GE Money to donate $60,000 for breaching act

6:01 pm on 19 December 2011

GE Money will give the Federation of Family Budgeting Services $60,000 as a consequence of breaching the Fair Trading Act.

In October this year, the finance admitted it breached the act with an advertising campaign inviting customers to consolidate their loans into one new loan to be paid off over a longer time period.

The Commerce Commission says the advertising claimed customers would be better off each month, and have more cash.

But in actuality while monthly payments were intially smaller, they were substantially higher than the original payments for most of the loan period.

It says GE was unable to supply the Commerce Commission with any acceptable evidence that customers would be financially better off, other than initial savings.

The commission says it has settled with GE Money, and as a result a $60,000 will be given to family budgeting services.