RUSH, NEW YORK -- As a consumer from your state, I felt it was my responsibility to bring to your attention the following incident.
In February, 2006, I received a mailer from GE Money Bank advertising a line of credit showing sample amounts borrowed from $5,000 up to $50,000 with monthly paybacks shown at a 7.9% interest as the lowest rate available.
I have a very high FICO score, so I called the toll free number to request $25,000 with a 48-month payback. The loan consultant took my information and in approximately 10 minutes came back and told me 'Mr. Barone, I have some good news for you. I can give you $14,500 at 15.9% interest.' I was furious, as I have always qualified for the lowest available rate because of my great credit score. The consultant kept asking me if I wanted her to send the check. I vehemently told her NO at least 5 times and then asked to speak to her supervisor, who I told the same thing as well as issuing a complaint. I firmly believe that no one who applies gets the 7.9% rate. This rate is simply a 'come on' to get your information and open an account. Yesterday, I received the check that I insisted I did not want. No where on this letter or accompanying documents did it specify my interest rate. There was only mention of a 15.99% rate in the credit agreement, which substantiates my claim that no applicant gets a lower rate.
I called their 800 number immediately to have them close this 'account' and have this removed from my credit record. I was told that I could close the account, but because I 'applied' this must stay on my credit record for 24-months by law. I asked for the address of Scott Young, VP of Personal Finance for GE Money Bank, whose signature appears at the bottom of the letter thanking me for opening the account which I asked not be opened. I plan to write a very unpleasant letter to this man today.
This company is praying on people that are desperate for money. By the time an applicant receives a check, they have probably forgotten the interest rate and just cash the check(s). Their advertising information is misleading and fraudulent and their business practices are at best questionable.
As a resolution, I would like the following:
This company should not be allowed to take advantage of people with false claims of low interest rates and loan amounts that they can't deliver on.
In my opinion, GE Money Bank should be ordered to stop such fraudulent advertising and business practices. They should also be heavily fined and forced to pay restitution to those who they cheated.
Please contact me if you need more details regarding this incident.