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Member
hpythons
Posts: 5
Registered: ‎02-04-2013
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GE Capital set exit retail lending

Can anyone elaborate on what this means for cardholders.

http://www.cnbc.com/id/100999070
Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
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Re: GE Capital set exit retail lending

It means GE capital will be a brand new entity managed by itself.

Current cardholders may see some disruptions, or changes in policies. Overall its pretty much the same as when a card product is sold to another bank.
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Established Contributor
Rackham94
Posts: 510
Registered: ‎04-01-2013
0

Re: GE Capital set exit retail lending

Get the 4th statement cut-off CLI while you can kids

Frequent Contributor
bobbay
Posts: 320
Registered: ‎07-12-2013
0

Re: GE Capital set exit retail lending

Rackham94  What do you mean by that statement.

 

To me it would indicate the people in this division would be under pressure to keep delinquencies low, customer growth high to maximize ipo demand.  I am not sure I would expect big changes until they have pulled a significant portion of money out.  If sold in parts or individual card/brand lines then I would expect account reviews and # of cards and total line exposure to get stronger review.

 

If I had really high limits or lots of GEMB cards I would expect trimming may get done for you in the future.  Does that sound rational?


Current Score: EX 702 4/19/14, TU 713 4/14/14 lender pull, EQ 701 4/14/14 lender pull
Last app 12/8/14


Established Contributor
Rackham94
Posts: 510
Registered: ‎04-01-2013
0

Re: GE Capital set exit retail lending

Seems rational of course and your statements are correct in an aspect depicting typical performance when a company sells its segment to another entity.. e.g. Best Buy Rewards HSBC>Cap 1> Citi anyone could get a BBY card back then currently with GE being primary lender ability to increase revolving credit lines to its customers is very feasible due to performance however; I forecast a change in risk assessment and strategy in the future. I may be wrong but it seems like a firm assumption.

Frequent Contributor
bobbay
Posts: 320
Registered: ‎07-12-2013
0

Re: GE Capital set exit retail lending

I was thinking the same thing.  I am curious to see how this plays out.  I could see both happening in the short run.  Expand credit and customer base to show strong growth but weather now or the near future risk management will look to prune/manage risk exposure.  I think one thing is for sure, the game is about to change with the way the GE cards work.

 

I have none, was looking at getting a Lowes card for some projects but, I just finshed an app spree. ;(


Current Score: EX 702 4/19/14, TU 713 4/14/14 lender pull, EQ 701 4/14/14 lender pull
Last app 12/8/14


Regular Contributor
SisterGirl
Posts: 227
Registered: ‎11-17-2012
0

Re: GE Capital set exit retail lending

I wonder if this includes GECRB cards or just the GE Capital ones that will be affected ?

SisterGirl
SisterGirl
Frequent Contributor
TheConductor
Posts: 492
Registered: ‎07-24-2012
0

Re: GE Capital set exit retail lending

This doesn't necessarily bode any changes to GE lending practices.

 

They are spinning off the lending division in order to minimize the main company's exposure risk.  In other words, they want to goose their stock price higher by jettisoning the most risky part of the business that worries investors.

 

If any changes do happen in the new spun-off company, they're unlikely to come overnight.

 

Retail credit is a niche that has to be filled by someone, and I am sure that in the near term they will continue to fill it in much the same way they always have.

 

Nothing in the press-release-pretty-much-verbatim-quoted-as-an-article suggests otherwise. Fundamentally this is about GE stock price, not about anything being wrong with GECRB per se.

 

In fact, the analysis here suggests that the real risk is in GE Capital's real estate subdivision, not in the significantly more profitable GE Capital Retail Bank that underwrites all those store cards. 

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Valued Contributor
starry1
Posts: 2,317
Registered: ‎11-29-2012
0

Re: GE Capital set exit retail lending


TheConductor wrote:

This doesn't necessarily bode any changes to GE lending practices.

 

They are spinning off the lending division in order to minimize the main company's exposure risk.  In other words, they want to goose their stock price higher by jettisoning the most risky part of the business that worries investors.

 

If any changes do happen in the new spun-off company, they're unlikely to come overnight.

 

Retail credit is a niche that has to be filled by someone, and I am sure that in the near term they will continue to fill it in much the same way they always have.

 

Nothing in the press-release-pretty-much-verbatim-quoted-as-an-article suggests otherwise. Fundamentally this is about GE stock price, not about anything being wrong with GECRB per se.

 

In fact, the analysis here suggests that the real risk is in GE Capital's real estate subdivision, not in the significantly more profitable GE Capital Retail Bank that underwrites all those store cards. 


 

This makes the msot sense to me.


Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
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Valued Member
Mike1inTX
Posts: 30
Registered: ‎07-03-2013
0

Re: GE Capital set exit retail lending

Asked for an increase on my Walmart store card.  Denied.    6th statement from last increase

 

Letter arrived yesterday.  Reason stated: number of inquiries.   TU has 1 inquiry on 10 / 2012 from Chase.    EQ zero EX zero

 

CL  $3300     Utilities  Less the 1 %   Walmart credit score 745

 

Seems like GE is tightening the belt quick.

 

Some folks have posted that all their GE accounts are frozen and under review.

 

First CLI request from GE denied for me since 2009.

 

Looks like changes are already underway.


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