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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

General Electric

Unlawful Debt Collection Practices

Date: 08/07/1998 (Date of Settlement)

Misconduct Type: Consumer Affairs

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Civil

Amount: $3,000,000

Disposition: Settlement

Synopsis: 50 States participated “in an approximately $97 million settlement agreement with General Electric Credit Corporation (GECC), which issues dozens of private label credit cards, together with Montgomery Ward Credit Corporation, for alleged unlawful debt collection practices from consumers who declared bankruptcy. The multistate group was led by the state attorneys general in Missouri and California.” Under the settlement, GECC and Montgomery Ward Credit together paid an estimated $70 million to approximately 70,000 consumers nationwide from whom the companies collected invalid debts. In addition, the companies paid the states attorneys general $24.5 million. GECC also paid $3 million into a consumer education trust fund.