CareCredit interest rates class action lawsuit overview:
- Who: A consumer filed a class action lawsuit against Synchrony Bank.
- Why: The class action lawsuit claims Synchrony Bank offers exploitative high-interest so-called CareCredit loans to consumers in need of financial help during emergency medical situations.
- Where: The CareCredit class action was filed in New York federal court.
Synchrony Bank offers “exploitative” high-interest loans to individuals in need of emergency care at medical and veterinary offices, a new class action lawsuit alleges.
The class action lawsuit claims the so-called CareCredit loans offered by Synchrony Bank often carry “extraordinarily” high interest rates that are “above and beyond what is permitted by New York’s state usury law.”
“To compound such matters, these loans are offered to consumers at extremely vulnerable moments in their lives – and they are unable to grasp the potential financial ruin that awaits them when they ultimately choose to pull the trigger on one of these usurious loans,” the CareCredit class action says.
The consumer behind the complaint is seeking to represent a nationwide class of CareCredit account holders who signed up on the CareCredit website and who accrued interest above 16% per annum during the applicable statutory period.
Class action says CareCredit interest rates can go up to 39.99%
The consumer argues the interest rate on a new CareCredit account is an “astonishing” 32.99% per annum as of May 30, 2024, and account holders who end up being late on payments can see their interest rate go as high as 39.99%.
“(CareCredit’s) product is designed to take advantage of the flaws in the medical and veterinary services industries on the backs of unwitting consumers that they eventually crush under a mountain of debt,” the CareCredit class action says.
The plaintiff claims Synchrony Bank is guilty of unjust enrichment and breach of good faith and fair dealing, and violating New York’s Deceptive Trade Practices Statute and Usury Laws.
They demand a jury trial and requests declaratory and injunctive relief and an award of compensatory, punitive, actual and statutory damages for themself and all class members.
The Consumer Financial Protection Bureau ordered Synchrony Bank — then known as GE Capital Bank — to pay $34.1 million in June 2014 to refund more than 1 million consumers who signed up for a CareCredit credit card under the belief they were interest free.
Do you have a CareCredit account? Let us know in the comments.
The plaintiff is represented by Javier L. Merino and Brian D. Flick of DannLaw, Jennifer Czeisler, Edward Ciolko and Arturo Pena of Sterlington, PLLC and Adam Pollock and Anna Menkova of Pollock Cohen LLP.
The CareCredit interest rates class action lawsuit is S.G., et al. v. Synchrony Bank, Case No. 2:24-cv-05788, in the U.S. District Court for the Eastern District of New York.
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586 thoughts onCareCredit loans with high interest rates offered at vulnerable moments, class action claims
Getting this Care Card for my dog’s vet care is something I wish I had never applied simply because of the interest which is over $500. This is predatory and needs to be stopped immediately!
Applied for Care Credit for my son’s orthodontist procedure. Single mother trying to do the best she can for her children. Thought Care Credit would be able to help with this. Definitely not with the interest rate at 35+%!
Foley, AL
Care Credit got me when I took my cat to the vet and found out he had cancer. Soon after, I had to put my cat down and had him cremated.
Care cred grabbed me as my dog was in ER . She died but THEY are the ones sucking the life out of me the debt has multiplied by 10 or so at outrageous percentages.
I had to have dental work in 2023 and had to use care credit for $2400 it took me so long to pay it off because $102.00 of my payment was going to interest
Hello,
I have the similar situation. I had a desperate need for surgery for a kidney stone pretty much life threatening and they would not do the surgery without $1,500 down first. So CareCredit approved me and recommended through the hospital for a ridiculous interest rate which was synchrony Bank. And then I had my surgery and I was approved by the hospital for charity write off for all my past due bills so thank God those were written off. But synchrony bank is refusing to write off my bill as well even though that I was approved by the hospital for my past bills. It was clear that I could not afford the surgery. They had referred my bill to monarch recovery and also a huge hit on my credit report every single month. My credit score is very low right now. It was sold to monarch recovery which I told them that it should be going back to synchrony Bank so I don’t know where to go from here. I do have proof that there was the payment from the hospital. I have proof of an approved charity write off amounts from my hospital bill that would also be able to cover that synchrony bank bill. Florida
care credit added $2,929.68 on Nov 17th for interest. Never heard of anything like that before.
I was charged crazy interest that just raised my credit level on this card over the original limit. They are now harassing me over payments. I was under the impression that if I paid on time every month that there would be no interest. All of a sudden there was over $700 in interest. No warning at all. I was making at least the minimum payment every month. Then Not the case obviously. I can’t even get a real human on the phone.
Same happened to me. Did you find help with a solution? What can we do?
Not only was the interest rate crazy, but they tacked on credit card insurance without my approval. I had set up my monthly payments with them, but it did not include the $30+ a month insurance, so they said I did not make my payments on time and tacked on the interest at the end!
Same situation here for dental work and +30% interest. Never got a notice of this class action lawsuit. Denver Colorado.