Japan Watchdog Probes GE Finance Unit on Debt Collection Practices

Published on:
8 December 2006 at 06:33 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00009091-japan-watchdog-probes-ge-finance-unit-on-/

by Mike Bevel, CollectionIndustry.com

A Japanese financial watchdog has put GE Finance Unit on notice over allegedly illegal debt collection tactics.

GE Consumer Finance, a unit of General Electric Co., said in a prepared statement it called a customer at work twice in April even though the customer asked not to receive such contact after the first call.

Much like in America, calling a debtor at his or her workplace ? especially after being requested not to ? is a violation of Japan?s money lending laws.

GE is claiming that the second call was an accident due to an internal miscommunication. It went on to say that it hasn’t received notice of a formal punishment from Japan’s Financial Services Agency.

GE Consumer Finance apologized for its actions and pledged to take steps to prevent such human errors from recurring.