6 Nov 2008

Bully tactics claimed

9:02 pm on 6 November 2008

A lobby group claims GE Money is using bullying tactics by threatening investors in the failed Blue Chip company with foreclosure.

In May, Commerce Minister Lianne Dalziel said companies should stop trying to recover money from victims of the company's collapse, until an investigation by the Serious Fraud Office is complete.

The lobby group Exposing Unacceptable Financial Advice was set up to assist victims of financial company collapses. It says dozens of Blue Chip investors who have mortgages with GE Money have been told to pay up or face losing their homes.

The group claims GE Money is reneging on an agreement to not recover money until the Serious Fraud Office investigation is complete.

However, GE Money says there was never an agreement to not pursue mortage holders. It denies it is bullying investors.

Spokesman Geoff Lynch says GE Money has been contacting only customers who have the capacity to make repayments.

Mr Lynch asks customers who are having difficulty making repayments to make contact with GE Money, so the situation can be discussed.