GE money

Many Timeshare Consumers are aware that GE Money [GE], was once a principal lender of Credit to consumers who were sold timeshare contracts in Europe.

They operated in the Timeshare industry, were members of the Organisation for Timeshare in Europe [OTE] now renamed the [RDO] Resort Development Organisation and granted some timeshare resorts an agency agreement to sell their financial products. GE membership has since been cancelled with the RDO and their members have since stopped selling GE loans. One reason for them pulling out of the timeshare market might be, the many claims GE face today.

When GE fell out with timeshare, their boots were filled by the likes of Hitachi Capital, Shawbrook and others who like GE support the Timeshare industry by way of the provision of finance to the industry’s potential consumers. With the birth and explosion of the internet and the knowledge that consumers can and should hold the lending Bank responsible for the mis-selling of the products, these new lenders [like others] have potentially been caught with their pants down as they have become the subject of many compensation claims.  Basking on the periphery of a profitable industry, enjoying high margins, these banking Companies appear to be left with the task of paying millions in damages to consumers [ via section 75 & 75(a) of The Consumer Credit Act 1974 and 2006] and for the MIS-selling infractions of the Timeshare resorts, who have [on many occasions] mis-sold the product and contravened the law.

In the case of GE Money, they have now ceased to trade and GE Money Home Lending has also stopped lending after its parent company completed a deal to sell off the rest of its loan book. The aforementioned Banks-Parent-GE Capital GEC did put the specialist lenders up for sale in April 2015 and under the guise of “it wanted to concentrate on its industrial and manufacturing businesses“. Being a company which has enjoyed good profits and should those profits continue to roll in, one finds it hard to understand why would they- in the alternative- close a profitable business unless the contrary assertion is correct. Quite clearly they developed a company, made good profits and then got burned which caused them to get out quick, thus, the full and unfettered reasons for their departure from timeshare is somewhat elusive.

Fulfilling their objectives, GEC has sold its £4,000,000,000 bn book debt to a consortium of Blackstone, TPG Special Situations Partners and CarVAl Investors. The shaving has taken place and it completes the sell-off of nearly all of GE Money’s £8.6bn UK loan book. When completed, GE Capital Chairman and Chief Executive Mr Keith Sherin said: “This transaction represents the sale of almost all our remaining UK mortgage business, which successfully provided financing for UK homeowners.” After the sell-off, GE Money then ceased lending and with immediate effect. Doug Hall stated it was: “a sad day” which tends to reinforce the proposition that it was necessary and they had a need to get out of consumer lending quickly.

Interpreting the closure as a ” sad day”, one can only assume that  GE Money did have a great business, made money and is now facing significant problems. In addressing the problems the only action they could take was to “tuck tails”, sell off the debt and shut down the operation resulting in “no profit” but a pipeline of losses until the haemorrhage of those losses stopped. At that future point, GE will close the company and make a distribution back to its shareholders.

Having teamed up with the notorious Timeshare industry and after placing their products with many timeshare resorts, GE may have found themselves on the hook for millions in damages thus,  did have a problem, which required an urgent and corresponding reaction.

To date, and having regard to their annual account submitted on the 17th of May 2015, they confirm that GE has lost £66 million and the shareholder funds are plummeting south by just about 10%. In dire straights, they have now disgorged themselves of all their employees and the entire operation is now under the ultimate management of General Electic Company in the US who control more than 90% of the voting rights.

The loss resulted in part, from the sale of its Sub-Prime loans. The buyer believed that significant risk was apparent, thus, paid less for the loan book so as to add in a buffer which might stem from the losses if the “book debt” was well managed.  The flow of losses was expected to stop, however, the company has been very badly battered for is associations with subprime timeshare loans to timeshare consumers.

That said, the latest accounts attract impairments due to on gong liabilities which will eventually impact the result in further years and those unquantifiable losses will be disclosed when all the claims have been paid.

With no Directors, nor staff, the company is entirely reliant upon others to sort out the closure and should they do so, I’m sure the shareholders will receive some money Back.

It is imperative that consumers check their loans and should they believe that they have been mis-sold a timeshare and that timeshare sale was supported by way of a GE Money loan, TESS will be only too happy to evaluate your position “free of charge”, as you potentially have a meritorious claim for compensation.

What one has to consider is that the 1st and principle agreement you entered into was that of the provision of finance not “the purchase of the timeshare. The reasoning why this principle hold firm is,- without the finance, you could not have bought the timeshare.

GE Money state all pipelines, in all businesses must be completed shortly, and at present Companies, House in the UK is reporting that the 2016 accounts are overdue. This warning follows the resignation of the following Directors.

 
03 Oct 2017 Termination of appointment of Richard William Bird as a director on 29 September 2017  ( Termination of appointment of Richard William Bird as a director on 29 September 2017
29 Aug 2017 Previous accounting period shortened from 30 November 2016 to 29 November 2016 View PDF ( Previous accounting period shortened from 30 November 2016 to 29 November 2016
14 Jul 2017 Appointment of Mr Anthony William Greenway as a director on 13 July 2017 View PDF ( Appointment of Mr Anthony William Greenway as a director on 13 July 2017
17 May 2017 Confirmation statement made on 14 May 2017 View PDF ( Confirmation statement made on 14 May 2017
11 Jan 2017 Termination of appointment of Manuel Uria-Fernandez as a director on 30 December 2016 View PDF ( Termination of appointment of Manuel Uria-Fernandez as a director on 30 December 2016
10 Jan 2017 Termination of appointment of Laurence Anne Renee Perrin as a director on 30 December 2016 View PDF ( Termination of appointment of Laurence Anne Renee Perrin as a director on 30 December 2016
10 Jan 2017 Termination of appointment of Denis Arthur Hall as a director on 30 December 2016 View PDF ( Termination of appointment of Denis Arthur Hall as a director on 30 December 2016
11 Oct 2016 Termination of appointment of Bernardus Petrus Maria Van Bunnik as a director on 1 October 2016 View PDF ( Termination of appointment of Bernardus Petrus Maria Van Bunnik as a director on 1 October 2016
11 Oct 2016 Termination of appointment of Robert Henry King as a director on 1 October 2016 View PDF ( Termination of appointment of Robert Henry King as a director on 1 October 2016
11 Oct 2016 Termination of appointment of Jacques Eric Llorens as a director on 1 October 2016

Posted on: 14th December 2017