When you have a credit card, you are bound by the conditions of the credit card. In some cases, those conditions might violate consumer finance laws. For Illinois residents with a GE credit card, learning that federal regulators are investigating the company's credit card business might prove to be very interesting.
The business is reportedly in talks with the Consumer Financial Protection Bureau about its debt cancellation products. The company notified the bureau about a problem that was spotted during an internal audit. The problem deals with a Spanish-language filing. A spokesperson for GE Capital says that the problem was disclosed in a prospectus.
The Department of Justice received a referral about the matter. A civil investigation was initiated concerning a potential violation of the Equal Credit Opportunity Act with Spanish speaking customers and customers who reside in Puerto Rico.
The company is trying to move away from being dependent on its financing arm, which at one point accounted for half of its profit. The company has recently filed an IPO as the first step toward getting out of retail financing.
The medical credit division of GE Capital has recently resolved allegations dealing with failing to explain loan terms for CareCredit. As part of the agreement between GE Capital and the bureau, the company agreed to pay up to $34.1 million.
These issues with GE Capital show just how important it is to fully understand the terms of any credit offer you receive. If you don't understand something or feel something is amiss with regard to your credit card debt, seeking the assistance of a legal professional might help you to get answers to any questions.
Source: Chicago Tribune, "GE's credit card business faces two federal investigations" No author given, Mar. 18, 2014