GE Capital Settles Reaffirmation Lawsuits
As previously reported, GE Capital began reviewing its consumer bankruptcy accounts in April of 1997. Based on that review, GE Capital voluntarily made full cash payments to 28,000 debtors in 1997. Under terms of the settlement agreement, GE Capital will make full payments to an additional 28,000 debtors and implement a process for other potentially eligible debtors to have their claims evaluated and paid if approved by the settlement administrator. The reaffirmation litigation related to a very small percentage of GE Capital's credit card customers. GE Capital's credit card business serves approximately 80 million people.
The company expects payments to debtors to be less than $100 million and the settlements will not be material to GE Capital's earnings. In 1997, the company reserved for its expected exposure in this matter.
GE Capital, which has admitted no wrongdoing, entered into the settlement to avoid protracted litigation costs. No fines or penalties are involved in the settlement.
GE Capital, with assets of more than US$250 billion, is a global, diversified financial services company with 28 specialized businesses. GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world.
SOURCE GE Capital
/CONTACT: John Oliver of GE Capital, 203-357-4346, office, or 203-270-0383, home/
CO: GE Capital ST: Connecticut IN: FIN SU: LAW
LZ -- NYTH114 -- 3727 08/06/98 18:32 EDT http://www.prnewswire.com
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|Date:||Aug 6, 1998|
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