# Have GE money lowered their mortgage rate? they are charging me 7.7%



## amok (6 Nov 2008)

Have GE money lowered their mortgage rate?  they are charging me 7.7%


Do they come under the same rules as the Irish Banks

AMOK


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## Elainee40 (7 Nov 2008)

*Re: GE Money*

NO NO AND NO.

Sorry for the caps but so annoyed but we are in the same boat, we rang last time in sept / oct to be told they are not connected to the ECB so wont be passing it on.
Phoned Yesterday to be told that no they are not passing it on as they borrow money from America,i said why didnt you then pass there interest rate cut to us then in September and why if the ECB put up the rates do they pass it on to us.
I was thinking of reporting them to the financial reglatory??


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## demoivre (7 Nov 2008)

*Re: GE Money*

The reality with a variable rate mortgage is that the lender is not obliged to pass on any rate cuts - competition usually sees that some or all of the rate cut is passed on though. However if  you are a sub prime borrower, GE's main mortgage market, you are likely to get less favourable treatment imo and you will have less bargaining power because you may not have the option of moving your mortgage ( or threatening to move ) to one of the mainstream banks.


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## bond-007 (8 Nov 2008)

*Re: GE Money*

You can normally move away from them after 6 to 12 months. I seriously doubt anyone stays with them much longer than that.


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## postman pat (8 Nov 2008)

*Re: GE Money*

I have a mortgage on a french property with GE bank,They seemed not interested in my query as to when or if they were reducing rates,when i pushed the issue,they said maybe soon!!!!
One thing if they are getting their money from the USA surely rates should be far cheaper.
the rate i have is 5.10 %,would be interested in any advice.


 Pat


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## bond-007 (8 Nov 2008)

*Re: GE Money*

5.10% is a bargain from GE Money. 

Current interest rate in the USA is 1%. Most of GE Money's customers are on 8%.


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## amok (9 Nov 2008)

Thanks for the replies - I have just mailed the Financial regulator with this problem. 

amok


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## ontour (9 Nov 2008)

Can someone explain to me what the grounds would be for a complaint to the Financial Regulator?  From my understanding financial institutions can charge what they like as their variable rate regardless of what the ECB / US rates are.

As many of the banks have been 'bailed-out' by the government, there is currently political leverage on banks to reduce rates when ECB goes down to give the impression that they government actions are all in the best interest of the consumer.  This does not make it a regulatory requirement.

If you think you are paying too high a interest rate, then shop around and move your mortgage business.


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## bond-007 (9 Nov 2008)

ontour said:


> Can someone explain to me what the grounds would be for a complaint to the Financial Regulator?  From my understanding financial institutions can charge what they like as their variable rate regardless of what the ECB / US rates are.
> 
> As many of the banks have been 'bailed-out' by the government, there is currently political leverage on banks to reduce rates when ECB goes down to give the impression that they government actions are all in the best interest of the consumer.  This does not make it a regulatory requirement.
> 
> If you think you are paying too high a interest rate, then shop around and move your mortgage business.


A happy GE Money stockholder speaks out. 

Many people can't move their mortgage. So it is right and proper for GE Money to charge too much? They could at least pass on the recent cuts. They still make enough from their margins.


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## Lightning (9 Nov 2008)

There would be no grounds for a complaint to the Financial Regulator if you are on a variable rate. 

How is it possible for GE to fund a EUR mortgage from the US ? 

If you are with GE it seems that you have one option - SWITCH


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## bond-007 (9 Nov 2008)

GE take on people who had judgements etc. Such people can never switch.


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## amok (9 Nov 2008)

Our problem is age - my husband is 58 - I am 49 - difficult to switch because of the age!   Apparently we are over the hill!!

amok


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## Elainee40 (9 Nov 2008)

bond-007 said:


> GE take on people who had judgements etc. Such people can never switch.


 
Thats not true, people can switch anytime, normal banks will take on sub prime mortgage holders from normally a year to 18 months cause they can prove they can pay the high rates and if they havent got themselves bad credit again.

in this market everything has stopped with exchanges etc


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## postman pat (10 Nov 2008)

I have the 5.10% rate with GE money with over 2 years,im just wondering if the ECB rate keeps coming down, will they have to bring it down too..or am i being optimistic!
by the way my loan to value is about 50%, my property is in south of France,so if anyone has any ideas about switching to another bank there etc,i would be grateful.


   Pat


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## VOR (10 Nov 2008)

Pat - Is the mortgage with GE Money Mortgages which is in Ireland or GE Money Bank which is a high street retail bank in France?
As the property is in the south of France I suspect it is with the French retail bank. 

Amok - GE borrows from the interbank market and not the Fed or ECB. They are not borrowing at 1%. As they had to go cap in hand to Warren B for a dig out I suspect they are paying a premium for the money. That's just a hunch though.
As you are on a variable rate, Fungus is right. The rate is at the bank's discretion.


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## postman pat (11 Nov 2008)

Thanks VOR for clearing that up,it actually is GE money bank alright,but is there a conection i wonder,the logo on  their  statments etc is the same as the  GE money one,sorry for going on a bit about this but it would be interesting to know.


   Pat


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## VOR (11 Nov 2008)

It is all part of General Electric. A diversified company.
GE Money has operations in about 55 countries. In Ireland it does not have branches but was rumoured not so long ago to be looking at Irish Nationwide. 
[broken link removed]
Although sub-prime for mortages in Ireland, they also do prime lending here and all over the world.


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## Michael3 (12 Dec 2008)

Agree with VOR. Ge money over here are part of General Electric, an American company. So in a sense they do borrow money from America - the GE treasury - GE money here borrow from the mother ship! The mother ship on the other hand raises its money on the global markets and the cost of those funds isnt going down. The reason its customers are charged a higher rate of interest is because they are higher risk, due to credit history or employment industry - nothing to do with age. This is a sub prime product. People like Elainee40 - surely GE money werent your first choice when you went for a mortgage - you must have tried high street banks first? If so - surely you cannot expect to be on an interest rate of 4-5% like prime customers - what was your reaction when you got offered the money - did you query the rate? If you have an excellent credit rating and got this mortgage thru a broker and they didnt offer you any other choice then I would go back to them if I was you and ask them why they recommended GE as the best choice for you. Are you currently in arrears with your mortgage - that isnt going to help if you want a rate reduction.


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## tooey66 (6 Apr 2009)

I would be very interested to hear what the Financial Regulator has to say about GE Money.  I take on board everything that everyone has written, but these people are really something else!  They prey upon people who are down on their luck, sometimes through no fault of their own.  The call centres are manned by 'children' who could do with a lesson in good manners.  I have explained my temporary financial situation - daily now for two months - until I am blue in the face, and still the threatening letters come.  Clearly they don't write anything down on file.  My rate is 8.9% so well done all of you on 5!  I have a short lease, so they would have problems selling my property despite their threats of repossession.  WOuld I be taken to Court?  If so, are the judges likely to be lenient given my current (unemployed) struggle?  THis is causing so much distress it isn't true, and feel like writing to that nice Mr. Obama....I am sure he wouldn't allow me to suffer in this way


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## bond-007 (6 Apr 2009)

GE Money will take you to court and much faster than any of the main stream prime lenders, that is a fact. Have a look at the high court masters listings and see how many cases they have on the go. 

The master has made it clear that he will refuse applications where the banks have acted unreasonably. It is anyones guess if GE Money have added in such a manner.

You are unlikely to get any sympathy here from the rest of the masses that consider what GE Money do is ok and just.


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## Elainee40 (6 Apr 2009)

tooey66 said:


> I would be very interested to hear what the Financial Regulator has to say about GE Money. I take on board everything that everyone has written, but these people are really something else! They prey upon people who are down on their luck, sometimes through no fault of their own. The call centres are manned by 'children' who could do with a lesson in good manners. I have explained my temporary financial situation - daily now for two months - until I am blue in the face, and still the threatening letters come. Clearly they don't write anything down on file. My rate is 8.9% so well done all of you on 5! I have a short lease, so they would have problems selling my property despite their threats of repossession. WOuld I be taken to Court? If so, are the judges likely to be lenient given my current (unemployed) struggle? THis is causing so much distress it isn't true, and feel like writing to that nice Mr. Obama....I am sure he wouldn't allow me to suffer in this way


 

Has your rate not come down in the last two months, mine has come down 1.5% and is a god send


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## iscritto (6 Apr 2009)

Why do you feel they "PREY" ? Can I ask if you felt like that the day you got approval ? I know things change... but do you really think calling their staff children is the right approach.  I have recently had my loan repayments lowered as my wages dropped.. have you tried that, it does mean you may more longterm but in my case I hope to be able to increase the payments again.


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## bond-007 (6 Apr 2009)

Are you with GE Money?


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## iscritto (7 Apr 2009)

Not sure if you are asking me that ... but yes I am.


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## tooey66 (7 Apr 2009)

I was a little hasty calling the GE Money call centre operatives 'children', and if I have insulted any of your friends or family, I apologise unreservedly.  I am just so distressed by a/being uneployed, b/ doing everything I can to get a job, c/being a pensioner and finding the prospect of 9-5, 5 days a week a little daunting, and d/terrified of losing my home at this time of my life.  I am now even more distressed knowing that GE Money have no compunction in taking people to court.  I don't hold any of the operatives personally responsible, of course the have a job to do and are acting in accordance with company policy.  
I have discussed a payment plan, but with no income other than my pension, it is a little difficult.  I can only trust in the Universe that a job comes my way soon.
Sorry again if I offended anyone...


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## iscritto (7 Apr 2009)

Fair enough, I know its very hard and today has not made it easier. Not sure if you can or if its an option... how about renting a room shortterm ?? I guess its not ideal but it might help. Or have you tried talking to mabs, you could have all contact  directed to them I think at least that might help day to day.


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