December 12, 2013 — The U.S. Consumer Financial Protection Bureau (CFPB) has ordered GE Capital Retail Bank and its subsidiary, CareCredit, to refund up to $34.1 million to potentially more than 1 million consumers who were victims of deceptive credit card enrollment tactics.
Consumers at doctors’ and dentists’ offices around the country were signed up for CareCredit credit cards that they thought were interest free, but they were actually accruing interest that was automatically added if the full balance was not paid at the end of a promotional period, according to a CFPB statement.
“Medical debt is already a big problem for many Americans. Poor credit card transparency should not be making the problem even worse,” said CFPB Director Richard Cordray. “Deferred-interest products can be risky for consumers in the best of circumstances, and today’s action ensures that CareCredit will no longer profit from consumer confusion. The bureau will not tolerate financial companies that take advantage of patients and their loved ones.”