Important Regulatory Changes

Now more than ever, financing is an important tool to help consumers achieve their purchasing goals. However, the economy is resetting itself and government regulations are being passed that impact consumer financing. In May of 2009, the federal government passed the Credit CARD Act.

You can count on GE Capital, as a leader in consumer financing, to help you navigate these regulatory changes. We know it is important to keep you informed on how your business may be impacted and what you need to do to be prepared as changes roll out. Some of the regulations took affect August, 2009, but the majority of the regulations take effect in February or July, 2010.

What are the highlights?

July, 2010

• Disclosure language on credit terms and applications have additional changes.
• Advertising and POP display materials must meet additional regulatory guidelines.
• Payment estimators must now include final payoff amount and how long it will take to pay off the amount financed.
• Consumer billing statements must now include additional terms, calculations and summaries.

February, 2010

• Disclosure language on credit terms, sales slips, OFPs (promo disclosures) have changed.
• “No Payments” went away (promotions without minimum monthly payments).
• “Less Than Six Months” went away (time duration promotions).
• A valid income amount is now required on all applications. Click here to learn more.
• Advertising and sales materials which communicate “No Payments” or “Less Than Six Months” are no longer valid.
• When advertising promotions in print or on the Internet, additional headline disclosure content is required and must be next to and in the same font size as the first reference of the promotion..

Why are these changes happening?

The regulations are designed to help consumers make more informed financing and payment decisions. Trends indicate that consumers are drawn more to the predictability of structured or monthly payment plans.

What do you need to do?

GE Capital has a dedicated team working on your behalf to embrace the rapidly changing government regulatory environment. To help you understand the impacts and answer questions you may have, we have posted the 2010 Consumer Finance Regulatory Guide and Frequently Asked Questions for your reference.

The regulatory changes also affect how special promotions can be advertised going forward and we have posted Advertising Guidelines for your reference. All consumer financing applications and sales processed through the Internet will also be affected and require new disclosures.