GE Money to pay $1.5m for misleading credit card customers
GE Money has been ordered by the Federal Court to pay a $1.5 million fine over making "false and misleading" representations to more than 700,000 credit card customers.
The Australian Securities and Investments Commission initiated legal proceedings late last year, saying the firm had told customers that in order to activate their cards, or apply for an increased credit limit, they would have to consent to getting unsolicited invitations for future credit limit increases.
That was misleading as such consent was unnecessary to activate the cards, the court found this week,
GE Money’s move, which occured between January and May 2012, was aimed at circumventing new consumer protection rules that came into effect in July 2012, requiring credit providers to get express consent from cardholders before sending out such invitations. Sydney Morning Herald – Read more…