CareCredit interest rates class action lawsuit overview:ย
- Who: A consumer filed a class action lawsuit against Synchrony Bank.ย
- 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.ย
- Where: The CareCredit class action was filed in New York federal court.
Synchrony Bank offers โexploitativeโ 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 โextraordinarilyโ high interest rates that are โabove and beyond what is permitted by New Yorkโs state usury law.โย
โTo compound such matters, these loans are offered to consumers at extremely vulnerable moments in their lives โ 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,โ the CareCredit class action says.ย
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.ย
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 โastonishingโ 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%.ย
โ(CareCreditโs) 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,โ the CareCredit class action says.ย
The plaintiff claims Synchrony Bank is guilty of unjust enrichment and breach of good faith and fair dealing, and violating New Yorkโs 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.ย ย
The Consumer Financial Protection Bureau ordered Synchrony Bank โ then known as GE Capital Bank โ 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.ย
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.ย
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.
Donโt Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Historic $1.5B settlement seeks payday loan forgiveness, other relief
- New lawsuit alleges USDA discriminates against minority farmers through unfair loan practices
- Biden cancels student loan debt for 150,000+ borrowers
- MOHELA slow to process Public Service Loan Forgiveness applications, class action alleges
454 thoughts onCareCredit loans with high interest rates offered at vulnerable moments, class action claims
I have a Care Credit acct
I have care credit and had to use it for a root canal because it was almost $3000.00, but I had to have it paid off in a year, my balance doesnโt seem to be going down though. Iโll be paying on it for a long time.
Will this be for California as well?
My husband and I applied for a Care Credit account for veterinarian services. My cat has FIV, she has inflammation and her mouth gets very inflamed. Care credit is very pricey and in an emergency I feel they take advantage of the interest rates! You never get it paid off!
Absolutely predatory! And exploited people as mentioned invulnerable moments. When youโre faced with for instance a critically ill child and you donโt have the money for the treatment or when your dog has the option of being put down or getting surgery what do most people do? They take the loan and do what they can but suffer financially for a very long time because of it.
will this be for
NY only?I live in michigan and they are out of their mind! very predatory during emotional moments.
I applied and got care credit for dental implants in 2016. They overcharge people who have an emergency and need money to pay their medical bills.
Yes, I applied for a CareCredit account during an emergency situation in May 2022.
Yes, I used my account for chemotherapy for my dogโs lymphoma treatments.
I just closed 2 Synchrony Bank accounts. Care Credit and Loweโs. Outrageous fees and high interest rates. They have a very predatory lender vibe. Closing the accounts dinged my credit, but I just canโt afford them taking so much and it seems like you can never get it paid down. I paid them both in full and closed them just this week. Itโs so crazy that you get penalized for paying your bills off.