GE Money may drop out of UK store card market

Financial giant, GE Finance, has the monopoly of the UK store card market, with responsibility for over 50% of store cards in the UK. Amongst the store cards for which GE Money is responsible are  Debenhams, TopShop, Dorothy Perkins, House of Fraser, and many others.

However, the lending giant recently announced that it will be carrying out a major review of its share in the UK’s store card sector in order to determine whether it is viable for the company to continue operating in this area. The high level of consumer debt in the UK, coupled with other factors, has resulted in the lender re-thinking its position in the store card market.

Another reason that has been attributed to GE Money’s decision to consider withdrawal from the UK store card market is the high level of criticism that is received about store cards, which charge a very high rate of interest on outstanding balances, and are said to have pushed many borrowers deep into the red.

Last year GE decided to look for buyers for its American store card division, and this resulted from the difficulties that were created by the widespread credit crunch, which was sparked in the sub-prime mortgage sector.