After a six-month investigation into advice it provided to customers, GE Money has given the Australian Securities and Investments Commission (ASIC) an enforceable undertaking to change its life insurance sales practices and compensate affected customers.

ASIC found GE Money advised customers to take out consumer credit insurance life cover as well as a term life policy when it would have been cheaper to buy one term life policy.

One of the largest providers of consumer finance in Australia with a 114-branch network, GE Money was also pulled into line by ASIC for routinely advising customers who were single and had no dependants to take out life insurance to pay out the loan, when it was not clear that it was in the customer’s interests to do so.