The Consumer Financial Protection Bureau Sounds Alarm About Medical Credit Cards
The CFPB has raised concerns about the pushy promotion of medical credit cards by healthcare providers, highlighting deferred interest terms, payment allocation confusion, and patient pressure. Dentists and other providers need to ensure clear communication and ethical practices when offering these financial products.
The Consumer Financial Protection Bureau (CFPB) has criticized how medical credit cards are promoted by healthcare providers, including dentists. In a recent update, the CFPB pointed out three major issues: deferred interest terms causing patient confusion, unclear payment allocation, and patients feeling pressured to sign up for credit cards during treatment. An examination revealed significant consumer complaints about these practices. Additionally, the potential for misuse, as these cards can be repeatedly used for medical services until the credit limit is reached, was highlighted. The report emphasizes the financial risks posed by these cards, with consumers having paid $1 billion in deferred interest from 2018 to 2020. The CFPB, along with the United States Treasury Department and the Department of Health and Human Services, plans to closely monitor how these financial products are marketed and managed by healthcare providers to protect consumers from potential financial harm. Click here to read more.
