Ge Money — Blackmail

I loaned a amount of money from GE Money at 11.50% per annum. The tenure of the loan was 12 years. After a period of only 2 years in Feb 2010 GE Money suddenly increased the Interest Rate to 12.88% per annum. That is an increase of 1.38% at a time when most Banks were reducing Interest Rates due to economic recession.

When i told GE Money that i wanted to close the loan since they had increased the Interest Rate too high, they applied a penalty of 4% + Service Tax as foreclosure charges!

I am at present being blackmailed on both sides. If i continue the loan i pay extraordinarily high Interest Rate. If i dont, then i pay extraordinarily high Foreclosure Charges.

I dont know if there is a way out or not... But my advice to all future loan seekers... DONT GO TO G.E. MONEY...