GE Beefs up Financial Collections Unit; Hires 700 Collectors

Published on:
16 April 2007 at 04:22 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00021862-ge-beefs-up-financial-collections-unit-hi/

Trying for a two-birds/one-stone strategy, GE Financial has added 700 collectors to its roster as it moves to stem the tide of subprime loans.

CEO Jeffrey Immelt said the measure came as part of a series of moves to counteract a difficult quarter at its relatively small WMC Mortgage business, a major subprime lender.

The collectors will make collection calls earlier in the process, and will make more reminder calls to debtors.

GE Money recorded $47 million in restructuring charges in the first quarter, which includes costs to reduce the workforce and close several offices of its WMC Mortgage business.