Australia Slaps GE Money?s Debt Collection Practices

Australian regulators have come down on the practices of the debt collections division of GE Money in response to consumer complaints about harassment from the company’s collectors.

The Australian Securities and Investments Commission announced today it has implemented an Enforceable Undertaking (EU) with GE Money, to battle against complaints of “excessive or inappropriate contact with customers, contact at unreasonable hours and an inflexible approach to repayment arrangements.”

Under the EU, GE Money must hire an independent expert to review its debt collection practices to ensure they comply with Australian guidelines. GE Money must undertake an action plan to implement any recommendations of the expert who will review the firm’s practices for two years.

In addition, GE Money will compensate affected customers and organize and underwrite industry workshops promoting best practices in debt collections.

Australian regulators also found that GE Money’s insurance division, Hallmark General Insurance Co., had not complied with an EU from 2006. The regulators found that the firm’s advice and sales businesses were often “poorly managed” and selling insurance to customers “whose needs had not been identified or understood.”
 
The regulators updated the EU on GE Money and the firm agreed to hire an independent expert to review and revamp its insurance practices.