Nevada to receive $350,000 in nationwide GE settlement

Nevada's share is part of a $27.5 million payment going to the 50 states. Figures aren't available yet on how much consumers will recover.

General Electric issues private label credit cards for several retailers including Montgomery Ward, Home Depot and Levitz.

An investigation by attorneys general in the states found that for four years, General Electric asked customers who filed Chapter 7 bankruptcy to sign reaffirmation agreements.

A reaffirmation agreement is a contract in which the consumer agrees to repay a debt rather than have it dismissed in bankruptcy.

Such agreements are valid only if they are voluntary and must be filed with the bankruptcy court. And the court must approve the agreements in certain cases.

But Attorney General Frankie Sue Del Papa said an investigation revealed General Electric failed to file the agreements with the court.

Customers involved will have their debts cleared, and General Electric will waive any right to repossess the merchandise. The customers also will be reimbursed or get credit for finance charges and penalties.

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