ASIC say that consumer complaints about harassment from the debt collection practices of GE Money included excessive or inappropriate contact with customers, contact at unreasonable hours, and an inflexible approach to repayment arrangements.
The government agency has taken action over the sales and debt collection practices of companies in the GE Money group relating to the advice provided by parts of its insurance advice and sales business and also, the debt collection practices of the GE Money consumer credit businesses.
ASIC has imposed conditions on the Australian financial services license (AFSL) of GE Money's Hallmark General Insurance Company Ltd and Hallmark Life Insurance Company Ltd after those companies failed to comply with commitments each made in a 2006 Enforceable Undertaking (EU) to ASIC.
ASIC found that parts of the insurance advice and sales business were often poorly managed and not meeting the legal obligation requiring there be a ‘reasonable basis' for personal advice given to customers. Specifically, ASIC was concerned that staff were selling insurance to customers whose needs had not been identified or understood.
Given that the Hallmark companies did not comply with a number of key undertakings given to ASIC in 2006, the regulator has decided the best way to protect consumers is to impose conditions on the AFSLs of GE Money's Hallmark companies.
