Program of the Month

As seen in the August issue of Western Retailer

Keeping Members Up-To-Date On Consumer Financing

The rules of consumer finance have changed as the once-common “no-no-no” promotions have gone by the wayside. New Federal regulations that took effect in February (Credit Card Accountability Responsibility and Disclosure, or CARD ACT) meant that retailers can no longer offer the no-payment option, although you can still make offers with no down payment and no interest for a specific period. These new rules and a still-challenging economic environment mean finding the right mix of credit offers for your store is vitally important.

The most popular credit deal now offered to WHFA retail members is a 12-month and 18-month, no-interest offer with minimum payments. These programs are less costly for retailers to offer than the former no payment plans.

“Almost a year into the custom WHFA/GE Money program we have managed to listen to the association and the retailers to deliver better economics, stronger approval rates and overall higher satisfaction with the GE money program,” states Randy Stewart, relationship manager of GE Money. So for members the WHFA program offers, new rate reductions, new holiday pricing, and more applications being approved.
The current financial crisis has also helped spur a greater emphasis on education. Every individual in your store should focus on how to be a better salesperson and the GE BUSINESS CENTER has information and tools about GE financing processes. These educational tools are used to train store salespeople on how they should use credit, how to overcome objections from consumers, and how to estimate payments among other items.
The retailers that use a consumer financing strategy that includes a variety of short, medium and long-term financing offers tend to do better. These retailers effectively use their association GE programs and the other GE tools (like BUSINESS CENTER) to benefit their bottom line and compliment their services.