CFPB Orders $34.1 Million Healthcare Card Refund

CFPB Orders $34.1 Million Healthcare Card Refund

December 18, 2013         Written By Lynn Oldshue

The Consumer Financial Protection Bureau is ordering a $34.1 million refund to over one million customers who have used GE Capital Retail Bank’s CareCredit card.

CareCredit cards are designed to pay doctor and dentist bills with no interest, but recent reports have indicated many consumers paid significant amounts of interest if their balances were not paid during the promotional period.

“The Consumer Bureau came to this case after receiving substantial complaints from consumers. According to the order we are filing, CareCredit has been engaged in harmful consumer practices since January 2009,” said Richard Cordray, Director of the CFPB.

Many of the complaints suggest that the card’s terms were vague, or they were administered to customers by people who had little to no training through CareCredit.

As previously reported, CareCredit first started feeling the pressure of the complaints earlier in the year. With the CFPB’s involvement, the company’s somewhat shady practices are sure to be stopped.

“CareCredit will have to be more transparent to consumers about its product in the future,” Cordray continued. “It must make consumers aware of the high interest rates that will be applied if the charge is not paid off at the end of the promotional period.”

For transactions over $1,000, customers will have to enroll in the program directly through a CareCredit representative, not a doctor or dentist office.

 



The information contained within this article was accurate as of December 18, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


lynn-oldshue

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : 2% cash back on purchases: 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus