Today Tonight ge story

[Sourbastard]

A company I used to work for, did debt collection for GE. The methods of the collectors are not always known or endorsed by the company that contracts them to collect.

[Yummy Mummy]

Originally Posted by 4.9 EF Futura

GE has to borrow money from the market at, let's say 7% or 8% as it is not permitted to take retail deposits. Therefore they charge high interest rates (which not only reflect their cost of finance but also reflects the riskiness of the lending which they are undertaking - unsecured personal finance, and i bet they have the arrears, provisioning and delinquencies to show for it). At the end of the day, you borrow money from someone like GE because you cant get it from a bank... a lender of last resort so to speak, because the bank isnt interested in lending you money to buy a computer, tv or 4 new tyres.

Spot on. It is all rate for risk. GE charge higher rates because their niche market is non-conforming. What institution will lend a discharged bankrupt with 12 payment defaults a 1st mortgage? GE can do it at 8.95% fixed for 25 years. Although interest rates look stable for the next quarter at least, who knows what the Reserve Bank will do in the next year or two, so that's not a bad deal for that type of client. But you're right, the higher the risk client, the higher the delinquencies, and the tighter the legislative regulations are, the harder it is to collect from clients that are historically bad payers.

Funny though, it is usually only the clients who don't pay that end up complaining about the company. In short, pay your debt and you don't receive collection calls. It's not rocket science.

[Hunter]

I've a card with them, don't really like them. I posted a little story about GE a while ago. Basically they kept pestering me to come in and 'consolidate' all of my debts (only have a car loan and the GE card) into one GE loan at some ridiculous interest rate. I told them that I wasn't terribly interested yet they kept calling. Anyway they called me easily a dozen times trying to arrange an appointment or get me to 'fax your details' so they could 'preapprove'. I wasn't going to fax them a god damn thing so eventually I gave in and told the chick who had been pestering me that I would come in one saturday and discuss it. At no point did I have any intention of going ahead with it. In fact the only reason I bothered going was because I needed something to do and the chick sounded pretty damn hot on the phone :.

So I rocked up and yes the chick was fit but as soon as she walked into the cubicle she slapped some forms down on the desk, complimented me on how nice I smelt (yes I was born yesterday :rolleyes: ) and asked me to sign. :

I dragged it out a bit, asked a lot of difficult questions, asked to see the PDS and any other contractual information. And after I had finished making her dance like a mexican jumping bean I told her that I wasn't wanting to go ahead as I was changing jobs (mostly bullИИИИ ) and didn't want to change my financial situations yet blah blah.

Oh and no, I did not get her phone number because she got a bit ИИИИed off that I strung her along for so long (over the course of a couple of months) and I didn't think asking her such a question would be wise.

[phoon]

It appears to me that 4.9 and Yummy seem to be putting forward the best arguments on this thread. Although I have never dealt with GE money, I do spend $5 million a year with GE Plastics. And as one of my major suppliers, I can only say that from the time I negotiated prices and terms with them, they have been one of the most professional companies I have ever dealt with. When I speak to anybody from the sales reps through to the State sales Managers, it is obvious they all have had fantastic training and know there products. I would suspect that this training and culture would be mandatory through all of there business' including GE Money. One thing most people unfortunately dont do, is read the fine print before signing legally binding documents, do this, make sure you understand the terms and conditions and if you dont understand, dont sign up until you do understand. You are better off feeling stupid because you dont understand something at the start and asking questions, than feeling stupid after youve signed up.

[clontarf_x]

For me GE Money are awesome, I had no job yet they gave me $1k cash advance card with 12months interest free no repayments which I bought my new rear tyres with.

No other company could understand the fact I was *about* to get a high paying job.

Rock on GE!

[Bluefreak]

GE listed me as a "clear out" after I phoned for a pay out figure, b-payed the amount, cut up my card and moved house... 2 years later I apply for finance and get knocked back. Get a copy of my baycorp info and low'n behold, GE had killed my credit rating. After many hours on the phone the best they could come up with was that the figure quoted to me hadn't been adjusted for interest or some crap like that... They refused to amend my credit rating and now I hate them... My credit went to hell because their staff stuffed up by a couple of dollars.

[qwigybo]

ge pss me off i have had 2 car loans with them worth about $60,000 went for a 3rd but they won't do me a better interest rate than 14.95 because i am only 21 i mean ffs i have never missed a payment and even pay extra each week, and don't get me started about the creditline card department it clearly states in hte system i work nightshift and non fail they ring me at 10am everytime

[Duffman]

You will find if you have a ge auto or buyers edge / credit line card they will provide your info to ge money. They will then contact (telemarket) you to consolodate those debts into a personal loan. The idea is to get you having everything with ge - a auto loan, personal loan and then two credit cards you just payed off with the loan to spend on again.

[4.9 EF Futura]

Originally Posted by Yummy Mummy

What institution will lend a discharged bankrupt with 12 payment defaults a 1st mortgage?

Lol, if an institution has a banking licence and lends to someone with 1 or more defaults/judgements then ppl like me tear strips off of them That's the regulatory difference... a Bank/Credit Union/ADI is putting its depositors at risk by lending to the risky end of town - something which is not taken lightly.

However, companies like GE are required only to comply with disclosure requirements as per the Corporations Act... and maybe the Uniform Consumer Credit Code (not sure if finance companies have to?) which basically says you cant lend someone money if they cant afford to...

The cards are really stacked in the consumer's favour... but id still say caveat emptor and FFS take 20 minutes to read every bit of paper they give you!

[Yummy Mummy]

Originally Posted by 4.9 EF Futura

Lol, if an institution has a banking licence and lends to someone with 1 or more defaults/judgements then ppl like me tear strips off of them That's the regulatory difference... a Bank/Credit Union/ADI is putting its depositors at risk by lending to the risky end of town - something which is not taken lightly.

However, companies like GE are required only to comply with disclosure requirements as per the Corporations Act... and maybe the Uniform Consumer Credit Code (not sure if finance companies have to?) which basically says you cant lend someone money if they cant afford to...

The cards are really stacked in the consumer's favour... but id still say caveat emptor and FFS take 20 minutes to read every bit of paper they give you!

yes finance companies have to comply to UCCC. Consumers are required to show capacity to repay (on paper), however the debt service ratio used is slightly different to that of the banks.

In saying that, the major banks are now following suit with finance companies, with the NAB recently setting up a non-conforming mortgage product as well.

[4.9 EF Futura]

Originally Posted by Yummy Mummy

yes finance companies have to comply to UCCC. Consumers are required to show capacity to repay (on paper), however the debt service ratio used is slightly different to that of the banks.

Yeah we've seen most banks/other ADIs moving more towards the "surplus" testing... which i think is fairly questionable as if you look at some the tests which are being applied, the ADI is assuming you can live on $50/week disposable and a child only costs you an extra few hundred per month... supposedly based on ABS statistics...

In saying that, the major banks are now following suit with finance companies, with the NAB recently setting up a non-conforming mortgage product as well.

A few of the regionals have been getting into it as well...sort of. Usually starting off by purchasing a non-conforming book but its more a way to access the customers to sell them a credit card as opposed to taking a margin on the credit. Non conforming books are capital intensive so a lot of them have just securitised them straight away. Id hazard a guess and say that NAB are writing the loans straight to an SPV and just skimming a bit off the top.... super funds have an insatiable appetite for that stuff. Lol, hardly touches the sides of the bank's balance sheet... clever buggers

[bwhinnen]

Originally Posted by Yummy Mummy

Wrong again,

GE Money was previously known as GE Finance and Insurance after acquiring AVCO in 1999. AGC was another acquisition in around 2003, and they have also since bought out Wizard Home Loans. The name change was purely a branding decision.

Paxton, I did change companies, however the 6 years I spent with GE has given me amazing business ethics, fantastic education in business principles, and will hold me in good stead for the rest of my working life. I left for reasons which made it quite negative toward the end, but I can't take away from the benefits the company has provided me.

And Avco aquired Household Finance in the mid 90's, I went through that aquisition and left Avco about a year after they merged the two offices and moved into the Sydney CBD.

[Ringo]

Interesting Finance talk Gents,

This non conforming stuff is s worry though

'Bad loans are writting up in good times' after all......

NAB are trying to sell Custom Fleet at present ....interesting stuff

[Mark351]

I develop automotive financial information systems for a living - I know a thing or two about GE Money.

[Mikey]

TT, ACA or any commercialised current affairs program are all 100% BS. When are people going to realise that there is always two sides to every story. I have had credit like most of us all our working lives and if you repay your debts there is absolutley no reason why they would harrass you. Admin procedures are a different story.

What i dont get is people who take up interest free deals, why the heck would you wait 24 months to pay anything back. I see it as a great opportunity to pay back without incurring any interest.

These shows only ever report half truths and when they say "we'll keep you up to dat with the progress" you never hear of the story again (in most cases anyway)

You may remember that show on the ABC with Rob Stitch as the anchor man (cant remember exact name now) It was so true to life how that industry operates.

AND dont forget, your payment is DUE NOW!!!

[4.9 EF Futura]

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