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Published On: Thu, Apr 25th, 2013

GE Capital Bank joins Wells Fargo to stop funding and lending to gun shops

General Electric has been informing gun shop owners that the company will no longer be providing lending and financial services to them, the Wall Street Journal reports.

GE Capital is noting that the decision comes in response to the Sandy Hook shooting and that firearms companies will need to seek financial support elsewhere.

Wells Fargo and others are now joined by GE in cutting off financial services to gun shops and manufacturers in response to the Sandy Hook shotting. photo/Vercillo

Wells Fargo and others are now joined by GE in cutting off financial services to gun shops and manufacturers in response to the Sandy Hook shotting. photo/Vercillo

Immediately after the shooting Cerberus Capital Management LP said it would try to sell Freedom Group Inc., the gun company it owns, which manufactures Remington, Bushmaster, Marlin and H&R.

The owner of Duncan’s Outdoor Store in Bay City, Michigan went public with his letter that states GE has come to the “difficult decision” to stop providing financial services to his business.

The WSJ report says they are not alone.

A spokeswoman for Wells Fargo & Co. said bank officials decided to exit gun financing nearly a decade ago. Bank of America Corp., which got out of the business in 2008, didn’t respond to requests for comment.

A spokeswoman for Citigroup Inc. said the bank doesn’t finance loans for firearms.

The U.S. gun market brought in about $11.7 billion in sales last year, according to IBIS World. Additionally, financing is merely a “marginal activity” in the industry so GE’s actions shouldn’t have a huge impact on the gun market, WSJ.com reports.

But that’s not to say gun shops won’t feel it as more large banks refuse to provide lending services.

“Your options are very limited by being in our business,” said Rex McClanahan, co-owner of Buds Gun Shop in Lexington, Ky.

“Smaller lenders have helped fill the gap. Last July, Randy Frazier opened a new division of his direct-marketing business called Gun Financing, promising on its website to arrange loans for ‘hottest firearms.’ Mr. Frazier said his audience is young men with spotty credit seeking high-end rifles and equipment for sport shooting,” the Wall Street Journal report adds.

 

 

GE Capital is apparently reconsidering its relationship to firearms companies following the Sandy Hook shooting.

Earlier this month, Glenn Duncan, owner of Duncan’s Outdoor Store in Bay City, Mich., claims he received a letter from GE Capital Retail Bank announcing its “difficult decision” to stop providing financial services to his business. Other gun shops have received similar notices, the Journal notes.

About the Author

- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

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  1. Peg says:

    Actually, Williams Sonoma just temporarily pulled all their pressure cookers from the shelves to honor those hurt/killed in Boston…we’ve literally gone insane. (and I don’t mean figuratively)

  2. Tim says:

    Someone else will fund them. This is total nonsense. As someone jokingly remarked on the radio this morning, do we now need to stop funding companies that make pressure cookers? Remember, it’s the shooter, not the gun.

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