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GE Capital Retail Bank has been ordered to pay $34.1 million to consumers who were enrolled in their allegedly deceptive CareCredit credit card program.
In December, the Consumer Financial Protection Bureau (CFPB) announced that it ordered GE Capital Retail Bank and its subsidiary, CareCredit LLC, to refund potentially more than 1 million consumers who signed up for CareCredit credit cards under the belief the cards were interest free. In reality, the cards actually accrued interest that was applied if the balance was not paid in full at the end of a promotional period.
“Medical debt is already a big problem for many Americans. Poor credit card transparency should not be making the problem even worse,” CFPB Director Richard Cordray said. “Deferred-interest products can be risky for consumers in the best of circumstances, and [this order] ensures that CareCredit will no longer profit from consumer confusion. The Bureau will not tolerate financial companies that take advantage of patients and their loved ones.”
CareCredit provides personal lines of credit for health care services. It is offered by medical providers and office staff as a payment option for their patients. According to the CFPB, CareCredit is sold by more than 175,000 health care providers across the United States. The CFPB began an investigation into CareCredit after receiving complaints from hundreds of consumers.
The CFPB reportedly found that service providers used deceptive enrollment processes to entice consumers into signing up for the CareCredit credit card. Further, many consumers did not receive physical copies of the CareCredit agreements and depended entirely on the verbal explanations provided by the service provider. Many consumers reportedly believed that the cards were interest free and did not realize they agreed to a deferred-interest credit card with a whopping 26.99 percent interest rate.
The CFPB also found that many of the health care staff responsible for explaining the CareCredit terms to consumers were inadequately trained. Some even admitted to CFPB investigators that they were confused by the deferred-interest credit card agreement.
According to the CFPB, since January 2009, consumers who signed up for CareCredit often were given an inadequate explanation of the credit card’s terms. These consumers reportedly incurred significant debt because they did not know how to avoid deferred interest, penalties and fees.
The CFPB has ordered CareCredit to provide $34.1 million in refunds to consumers who signed up for the credit cards without being properly informed about the terms of the CareCredit agreement. In addition, CareCredit must contact most consumers within 72 hours of the initial transaction to explain the product. Consumers making certain transactions of more than $1,000 must be enrolled by a CareCredit representative and not through a health care provider or office staff member.
More than 1 million consumers are potentially victims of deceptive CareCredit enrollment tactics. A copy of the CFPB’s order requiring GE Capital Retail Bank and CareCredit to refund consumers is available here.
GE Capital Retail Bank and CareCredit are not the first to be subjected to penalties by the CFPB. In April, Bank of America agreed to pay $772 million to settle CFPB’s accusations that it illegally charged consumers for a credit card and monitoring service that they didn’t receive. In September 2013, Chase was ordered to pay $309 million to more than 2 million consumers who were charged for fraud monitoring services they didn’t receive. And in 2012, Capital One and Discover were each ordered to pay at least $200 million in refunds to cardholders who purchased certain credit protection products over the phone, under the assumption the services were free.
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123 thoughts onGE Capital Retail Bank Ordered to Pay $34.1M in CareCredit Refunds
I have this card and may be eligible for the suit. Please send any info I may need to apply
My mother has this card. I need information on how to include her in this lawsuit please.
Please send me information as how I can sign up for the Care Credit Lawsuit.
Please send me information on how i can get in on this lawsuit.
Did you ever get the Information on how to attach to the lawsuit?
As has already been stated, CareCredit, LLC, is a subsidiary of GE Retail Financial Bank, both entered into an agreement w/CFPB to refund aprx $289 million dollars to consumers. Consumers are making deferred interest payment to GE Retail Financial Bank (now Syncrony Bank). A family member with VA benefits needed dentures; only active duty military personnel are eligible for dental needs; this person is not active duty. He came across a MetLife brochure setting forth a dental plan for veterans beginning 1/1/14. The needed dental work required coverage under the High Option plan, which would cover 50% (determined by zip code) of the cost under an In Network provider. Providers (dentists) advertising discounted care were approved as “In Network”. The veteran’s credit was not approved by CareCredit to cover the remaining 50%; I agreed to co-sign and applied online. The 18 page contract was able to be read online. I read every word and understood the “deferred interest” feature; I was immediately qualified. However, prior to clicking the submission button, I attempted to print the contract, but only pages 12 thru 18 were printable. To this day I do not have a copy of the online signed contract. I spoke many times to CareCredit and directly to the woman in the dentists’ office, who was promoting an 18 month “interest free” loan from CareCredit. Turns out that plan was “not available” and it would require full repayment w/in 12 months for the “interest free promotional plan. Although very nice, she later mentioned that all dental office personnel who were expected to explain the CareCredit contract were in the process of being retrained. Because of my insistence on openness under the contract, I learned from the dental office that, upon the contract having been signed, and before any dental procedure having begun, it had been immediately paid in full. This began in early May, 2014, and the veteran received his dentures 6/25/14. Unless both the veteran and myself, as co-signer, die prior to May, 2015, Syncrony Bank, aka GE Retail Credit Bank, will be paid in full. However, the veteran will be left to pay a monthly premium to MetLife until May, 2015. Because I read every word and made many inquiries, I understood what was going on, but clearly the “bait and switch” tactic regarding promotional monthly repayments and deferred interest would not be understood by any patient in need of care, let alone the unavailability of receiving a copy of a signed contract. How the dentists and MetLife work together setting fees by VA patient zip code is determined by their contract with one another. How the dentists get paid by promoting CareCredit is determined by their contract. There is also an additional cost to all CareCredit/GE Retail Financial Bank, aka Synchrony Bank, of $1.66/month/per $100 of the monthly ending balance if you opted in to the Card Security Debt Cancellation Program Agreement. READ, READ, READ and THINK PATIENT ADVOCATE no matter the medical or dental need!!!!!!
I would like to know more information on on this class action suit on Care Credit and how to sign up ?
I am interested in knowing more about this lawsuit. I am still paying off this credit card and it was a couple years ago.
Could you give us the information for the attorney? We still haven’t seen an agreement. We was’t told about the interest after a certain amount of months.
How do i sign up? My dentist office did me the same way. They charged my insurance, delta dental, and maxed the card out the same day. I knew something wasnt right when i asked her to reverse the charges. She stayed she could not. I explained my situation and they sold my account twice, and my 2200 bill is now 5500. The compaines they sold it too has harassed me on my job and personal phone by sending garnishment papers to my job . Embarrassed me..i lnow the dentist off ripped me off with that care credit card. I called care credit and was told by them that if i didnt get a letter from means i dont qualify and they refused to listen and even hung up on me. So where do i sign up to get some of my money back if not all
i have care credit card wat a need to do?????????????????????????????/give me a form to sing up!!!!!!!!!!!!!!!!!