A.G. Targets Exorbitant Credit Card Rates

June 4, 2013
Westfair Online  
credit card news

New York State Attorney General Eric T. Schneiderman reached a settlement agreement with GE Capital Retail Bank and its CareCredit LLC unit. The agreement requires new protections for consumers who use their healthcare credit card, which can carry an interest rate exceeding 26 percent. Under the deal, a “cooling-off” period is required to give consumers the chance to consider the card’s terms and the medical treatment plan. There also is a limit to what the provider can charge in advance. “The explosion of medical credit card debt is a major concern for many New Yorkers, particularly low and middle-income households and vulnerable seniors,” Schneiderman said. “This agreement will help New Yorkers by stopping providers from charging large, upfront fees for future services and from glossing over the huge interest rates associated with CareCredit when promoting the credit card to patients.”
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