GE Money raises fees on interest-free loans

By Patrick Avenell

GE Money, the credit provider for Harvey Norman, Domayne and WOW Sight & Sound, amongst others, has raised its account keeping fee from $2.95 per month to $3.95.

This increase, which occurred quietly early last week, applies to the myriad of ‘interest free’ loans consumers can take out to pay for consumer electrics appliances at certain stores. In addition to an account keeping fee, participating customers are also charged a loan application fee, which is around $25, depending on the loan.

On a big-ticket purchase, paid off over the full 50-month plan currently being offered by Harvey Norman, that would equate to $222.50 in fees and charges. This new 50-month interest free offer is in conjunction with Harvey Norman’s nearly 50 years celebration. Although the biggest loan plan ever offered by the retailer, a 10 per cent deposit is required.

In competition with this is Bing Lee, which is currently offering interest free loans on purchases over $1,000, but with no deposit necessary, until 2011. This equates to 27 months interest-free.

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