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GMAC concedes growth claim was overstated

GMAC-RFC has conceded that the claim that its business grew by five times the market rate in the past year was technically incorrect.

This would have meant that the market grew by 15% in the past 12 months when in fact growth looks to have been closer to 20%. Therefore Gmac-Rfc’s growth would only be four times the market rate.

GMAC-RFC’s pre-audit lending was 12.1bn in 2006, which represents 75% annual growth.

The claim has been disputed by Ray Boulger, senior technical adviser at John Charcol. He says the market has grown more than GMAC-RFC thinks, meaning its claim is technically flawed.

Jeff Knight, director of marketing at GMAC-RFC, says: “If our growth was not five times the market rate it was no less than four times – still a successful year. Ray is rarely wrong when it comes to statistics.”

Boulger says: “It’s a question of maths. We are near the end of the 2006/07 fiscal year and can see that it is likely to show growth of about 20%.”

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