In the wake of the Newtown massacre this past December, General Electric has decided that it will no longer provide consumer financing services for purchases from gun shops.
GE Capital said on Wednesday that it has stopped its lending program to help consumers finance firearm purchases. The company alerted shops that the program would be stopped earlier this year.
The move is not unprecedented. In 2008 GE cut off financing services to new businesses whose main business was selling firearms. Company spokesman Russell Wilkerson said that the new move will not be big blow to the GE Capital’s business, CNN reported.
The company released the following statement about its new policy:
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“As a responsible lender, we regularly review our lending policies and products to meet changing conditions and requirements. In 2008, we adopted a policy to cease providing consumer financing programs to merchants whose primary business is to sell firearms. Recently, we implemented a more rigorous audit process in our sporting goods segment in light of industry changes, new legislation and tragic events that have caused widespread reexamination of policies on firearms. This process has affected less than 75 retailers (approx. .001% of all gun retailers) and an immaterial part of our sales volume."
The new policy will not affect financing for guns bought at major retailers like Dick's Sporting Goods and Wal-Mart.
Newton is not far from GE's headquarters in Fairfield, Conn.