General Electric has decided to stop lending to gun store customers, and the decision seems not be because gun buyers do not honor their credit obligations. GE isn’t the only lender denying credit to thousands of gun store customers. Peter Lanza, the father of Newtown, Connecticut killer, Adam Lanza is an executive at GE Capital.
This month, Glenn Duncan, owner of Duncan’s Outdoor Store in Bay City, Mich., said he received a letter from GE Capital Retail Bank in which the lender said it had made “the difficult decision” to stop providing financing services to his store. Other gun dealers have received similar notices.
Rex McClanahan, co-owner of Buds Gun Shop in Lexington, Ky., remembered first meeting GE representatives at an outdoor trade show called Nation’s Best Sports in Fort Worth, Texas.
GE is at least the second big financial firm to retreat from the gun business following the school shootings, which claimed the lives of 20 first-graders and six adults in December.
Days after the killings, private-equity firm Cerberus Capital Management LP said it would try to sell the gun company it owns—Freedom Group Inc.— which makes brands including Remington, Bushmaster, Marlin and H&R. Source – Fox News
GE is based in Fairfield, Conn., and many of the GE’s employees live around Newtown, and several have children in the Sandy Hook elementary school, where the shootings took place. Peter Lanza, the father of Sandy Hook gunman Adam Lanza, is an executive at GE Capital. GE Chief Executive Jeff Immeltheld a town hall meeting with affected employees after the shooting, and the board has been updated on efforts to help staff, a person familiar with the matter said.
Amazingly, some in law enforcement have to buy their own gear, or perhaps buy gear they feel protects them better than that issued to them. Law Enforcement Finance opened only two weeks before the Sandy Hook killings to handle their needs.
GE actually stopped lending to gun stores in 2008 but grandfathered-in their current customers. Now that practice has ended. Hopefully, this will be an opportunity for other lenders to step in and fill the void.