Care credit cards under investigation in the USA
An investigation into healthcare credit cards has been launched by Attorney General, Andrew Cuomo.
Cuomo said he had been forced to act after receiving hundreds of complaints from consumers. A large number of patients said they had been convinced to sign up for dental and health care credit cards after being persuaded that they were a good deal by dentists and doctors; however, many of them ended up with unaffordable repayments due to high interest rates. Cuomo said that an investigation will now be launched into the financial incentives offered by the credit card companies; the investigation will also explore the role of dentists and doctors in the scheme.
So far, ten providers who support GE Money’s CareCredit card have been asked to give evidence and explain their support for the scheme in court. The associations and organisations which endorse and promote the card have also been asked to explain their association with card; organisations include the American Dental Association and the American Society of Plastic Surgeons. Cuomo has also demanded further information about the Citibank Health Card, Visa Health Benefits and Chase Health Advance.
Andrew Cuomo said that consumers were being let down by the health care credit card system; many of them had agreed to have the card so that they could afford treatment but were finding that they were facing huge bills further down the line. Cuomo said that providers were also letting patients down because they were pushing the cards for their own financial gain; most companies pay providers for treatments they carry out after just two days so it is an attractive option for dentists and doctors.
Some patients said they had signed up to the scheme without realising that it was a credit card; one patient said he was completely shocked to receive monthly credit card bills after paying $5,600 for a dental procedure.
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