The corporate watchdog has started legal proceedings against GE Money, alleging that the finance company engaged in misleading and deceptive conduct when dealing with its credit card customers.The Australian Securities and Investments Commission is seeking financial penalties against GE Money. It contends that between January and May 2012 the company told customers, over the telephone and by letter, that they had to give it consent to send them unsolicited credit limit increases before it would activate their credit card or give them a limit increase.ASIC contends that card-holders could activate their cards or obtain limit increases without giving their consent to receive unsolicited offers.Since July 2012, credit providers have been prohibited from making unsolicited written offers to increase customers' credit card limits. They must obtain consent before sending an offer of a credit limit increase.A GE spokesperson said yesterday: "GE Capital takes ASIC's concerns very seriously and is working with ASIC to address its concerns."GE Money's customers include people who have Myer and Coles branded credit cards and also users of cards such as 28 Degrees MasterCard, Eco Master Card, GO MasterCard, Buyer's Edge and GEM Visa.GE has had a number of run-ins with ASIC over the years. In 2006, GE refunded the GO Money establishment fee to 2500 customers after ASIC found that the promotional material for the product, which promised "it costs you nothing", was misleading.Also in 2006, GE gave an enforceable undertaking in relation to the sales and advice practices of its insurance business, Hallmark.In 2008, ASIC imposed conditions on the financial services licence of two GE companies, Hallmark General Insurance and Hallmark Life Insurance, after those companies failed to comply with the commitment made in 2006.ASIC said that parts of the insurance businesses were poorly managed and did not meet the legal obligation that there must be a reasonable basis for advice given to customers. It also criticised the debt collection practices of GE consumer credit businesses.In August last year, GE changed its personal loan advertising after ASIC found it was potentially misleading.