Report Due on GE Money Collection Practices

A report on GE Money’s debt collection practices in Australia ordered by the country’s securities regulators was due on Friday. The review and report was prepared by Ernst & Young.

The Australian Securities and Investments Commission (ASIC) in May ordered GE Money to closely monitor and overhaul its collection unit and pay compensation to customers that were impacted by unfair practices (“Australia Slaps GE Money’s Debt Collection Practices,” May 22). Despite a promise to pay consumers, GE Money had not provided any compensation two months later, according to an investigation by the newspaper The Age (“GE Money Slow to Disperse Debt Collection Penalties,” July 15).

But GE Money was waiting on a report from a formal review of its debt collection operations before concentrating on the compensation. The company 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’s first report was handed over to the ASIC Friday.

If the report finds that GE Money is in violation of Australian debt collection law, an action plan will be devised to correct the policies, according to The Age. If no further changes are required, the company will focus on paying out compensation.