My balance was 1900 and my INTEREST IS 1950!! CARECREDIT IS A PRODUCT OF GE MONEY BANK, A BANK WHICH USES THIRD PARTY TO ENGAGE IN GETTING PEOPLE LIKE MYSELF TO OBTAIN CORRECTIVE VISION SURGERY

I wrote to the Federal Deposit Insurance Corporation, Consumer Response Center, 2345 Grand Boulevard, Suite 100
Kansas City, MO 64108
I also wrote to the Federal Trade Commission, Board of Governors for the Federal Reserve System.
it's insane! 100% interest on a balance of 1900? It's 1950 interest on a balance of 1900!!!


HERE IS MY STORY: :

I filed with the Federal Trade Commission online but I am advised that this office has a better sense of public sensibility if I write in letter form. I would like this office to engage in an investigation of the practices of GE Money.

And to that effect, I attach “samplings” of the complaints filed by consumer that I obtained on-line. In addition, I attach a copy of my recent bill due November 27, 2009 and which I received on or around November 22, 2009. As you can see from the complaint filed with the FTC, it was filed 11/22/2009 the day I received my bill, and yet, GE MONEY’s computer generated letter was dated November 18. 2009. The date of this letter is important for two-fold reasons. GE Money had anticipated the interest to rise and they pre-emptively sent these computer letters selectively to those who they categorized as high risk. But that is not the issue. The issue is whether GE Money had acted within reasonable bounds of acceptable practices that are not predatory. By singling out some prior to the actual due date, they have “selectively” chosen the members of the debt class, and worse, they failed to provide adequate notice of change in terms.

FACTS:
In or about April 2008 I was considering a corrective eye surgery which would correct my terrible vision. In or about that time, I was advised by my Doctor. that there is financing available through a card called CareCredit. They contacted Carecredit and obtained a financing at ZERO APR, which I was advised would give me time to make payments over time. The payment obligations were made to GE MONEY. I have never been late and even had automatic repayment along with additional payments. I whittled my debt from about $5, 000 and only $1900 was remaining. But based on the assumption of my ZERO APR, I continued repayment without being late.

In or about November 22, 2009 of this year, I received a bill for payment. It stated that I owed $3, 570, of which the INTEREST EXCEED THE BALANACE OWED. The Interest was applied from inception of my card, NOT from when the expiry of my term. The expiry date of the term would have been November 2009 or so. The purpose of financing was to provide the consumer the opportunity to engage in a medically necessary or meeting ancillary concerns without being financially exhausted.

By adding INTEREST carried backwards, the offer of ZERO APR is a fraudulent and a misrepresentation of the terms and conditions.

Moreover, there was NO NOTICE that the terms have changed or that it will become changed. I had created automatic payment and in addition, another payment in order to protect my credit record. The implication of the interest added form the inception of the term is excessive! And if the financing facil8ity such as GE MONEY Bank which offers products like Carecredit and other types, a clear NOTICE and ADEQUATE NOTICE should have been provided prior to sudden rise in interest, in order to give the consumer the option to OPT OUT, or Repay down the debt before it becomes ripe. That inadequacy of notice is deliberate and the offer made through a third party service provider, such as a doctors; office is PREDATORY LENDING practices.

I was so disgusted that I researched on line the number of persons who have been scammed in similar manner. I am attaching a copy of those complaints. You will see that GE MONEY Bank and their products that they carry are generally and customarily done through a THIRD-PARTY service provider, such as a medical facility, veterinarian’s office, or some stores. They do so because this adds a layer of legitimate “buffer” between the consumer and the actual financing vehicle.

AS a member of FDIC, FTC and member of the Federal Reserve Banking, GE MONEY has an obligation to meet the standards of federal regulations, in which this office has jurisdiction and oversight over their practices.

I will pay down my balance ONLY but since GE Money is a scamming agency, I would like to obtain a guarantee and a stipulation that they will provide me with accurate accounting, and also guarantee that this will not alter my credit reporting.


Enclosure
Cc: GE Money Bank PO Box 981127
El Paso, TX 79998-1127