From the desk of San Francisco lead attorney Alison Cordova:
The Wall Street Journal reported that General Electric Company (GE) has announced that it will be separating from its credit card unit and no longer issuing commercial credit. GE is the nation’s fifth-largest commercial lender and 55 million Americans hold its credit cards. GE’s consumer finance unit provides store credit cards for Wal-Mart, Gap, and Banana Republic to name just a few.
And what is responsible for this cancellation? “Credit use hit a wall during the financial crisis, leaving investors wary of paying too much for shares of companies in the banking business.” Interestingly enough though, the Wall Street Journal says that GE’s historically low delinquency rates have the consumer finance unit actually performing better than it has in years. Guess GE just doesn’t see a future in the post-Great Recession consumer.
According to the Wall Street Journal, an IPO could come early next year for the commercial lending unit.
If you want to get out of the credit card game (like GE), contact a debt settlement attorney who is experienced in negotiating for substantial reductions in credit card debts. Be one of the smart consumers who are wary of paying too much for shares of companies in the banking business, and take control of your finances.