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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454 thoughts onCareCredit loans with high interest rates offered at vulnerable moments, class action claims
Yes I have a Care Credit account and this is disturbing. Please add me. Thank you
I was paying so much in interest that I had to get a debt consolidation to pay it off!
Ad me please
Sign me up
I had the CareCredit card because my cat was seriously ill and the vet offered it. I was so worried about my pet, I didn’t realize the interest was 39%
And they charged yearly fees as well. I ended up losing the card because I couldn’t afford to pay and it ruined my credit because it was charged off
Spouse needed expensive dental work and signed me up for a CareCredit account. I pay $$$ every month and the balance stays the same every month. I want to be a part of this lawsuit against Synchrony bank. Thank you
I live in Sacramento, California. I have a care credit card by Sync running bank, I agree with the lawsuit.
Can I join this settlement?
I needed some dental work done and only option was Care Credit. I hate it that I chose this option because the interest rate is very high.
I made the mistake of going to a dentist who pushed Care Credit for their dental services and not having insurance at the time and needing emergency services I felt I had no choice. Now 4 years latter I’ve barely paid half of the almost $6,000 I incurred even with making double the minimum each month.
I accepted a Care Credit card on the belief that it was interest free. Nine months later, I was hit with a heavy amount of interest because they claim my free interest period had expired. I had no idea what that date was or that it would expire.