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.
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454 thoughts onCareCredit loans with high interest rates offered at vulnerable moments, class action claims
I have had Care Credit Cards for about 10 years starting in California then I moved to Oregon where I have used this card for dental emergencies. My interest is 39.9% and I could not pay off my card until I have an auto accident and with insurance settlement I finally paid off $3400.00, otherwise it would have taken me four years. But I still have the card open as I have more dental work. I notice that the interest rates kept increasing over time. Once you reach a balance over 500.00 yourโre in trouble as the interest is compounded and it keeps adding it to the balance you owe.
Please add me to your list, hope we can help enforce an interest rate cap on these medical credit cards that are suppose to be there to help people manage out of pocket healthcare expenses, for themselves and/or for their pets.
Also had account for 5 years had to close acct became a victim high interest rate.
My husband and I each have an account. The interest for one month was $80.00+ on my husbandโs. We only use it for vets. It will prob take 10 yrs or more just to pay them off.
I have had Care Credit Cards for about 10 years starting in California then I moved to Oregon where I have used this card for dental emergencies. My interest is 39.9% and I could not pay off my card until I have an auto accident and with insurance settlement I finally paid off $3400.00, otherwise it would have taken me four years. But I still have the card open as I have more dental work. I notice that the interest rates kept increasing over time. Once you reach a balance over 500.00 yourโre in trouble as the interest is compounded and it keeps adding this to the balance you owe.
Please add me to your list to enforce interest rate caps on these medical credit cards that are suppose to be there to help people manage out of pocket healthcare expenses, for themselves and/or for their pets.
I have also had a CareCredit account to help pay for veterinarian fees for my dog.
Please contact me as I have a past due account with them and they did this to me when my dog was dying and I took it to a vet hospital and they wanted $2k for first 2 hours of testing or exam up front so they told me to apply for care credit cause I didnโt have any money
Care Credit charges me $50 if my monthly payment is late one day. This is my first time using them and itโs only been 6 months. I make my payments every month. Took a bit for me to figure out why my monthly minimum amount was so varied despite not using it for months. They never gave a break down of payments and fees.
That is correct for me! It is taking me years to pay off the $3,000 ER hospital stay for my savannah. I got $778 to go.
I have two Care Credit cards and have wondered why I have two different accounts.
please add me they did this to me at the dentist office because my husband could not chew or eat properly.
I have a care credit loan and so does my husband, please add us to the list
I have a Care Credit Card I have had it for years