GE Capital has its task cut out as it has been ordered to pay punitive damages of around $34 Mio USD to its customers in USA. The main reason for being asked to pay these damages is because of the deceptive manner in which it enrolled unsuspecting customers under its credit card enrolment scheme. The order has been passed by The Consumer Financial Protection Bureau. The ruling will also be applicable to Care Credit, which is a subsidiary of GE Capital
What The Whole Thing Is About
According to the CFPB, GE Capital has been asked to pay the damages to its customers because it misled the customers in making them believe that they were being offered interest free credit cards. However, in reality it was not an interest free offer but the interest was loaded in the front and the customers were charged for it, a later point in time.
How People Fell Into The Debt Trap?
As customers started spending merrily for a few months they were shocked to find that the interest was charged in the subsequent bills and nonpayment of the same resulted in penal interest and other such charges resulting in massive addition to the overall outstanding for such customers.