The popular medical credit card, CareCredit has been fined by regulators for its deceptive marketing practices. More than 100 professional groups, including the American Dental Association endorse the card. A regulatory filing done this week revealed the credit card company paid dozens of professional associations to convince their members to pitch the high-interest credit cards to their patients.
Protections in the U.S. Truth in Lending Act are designed to help consumers compare different financing options. CareCredit has been cited for faulty marketing practices by the New York Attorney General’s office and by the U.S. Consumer Financial Protection Bureau.
This is not the first time the company has come under scrutiny. Back in December of 2013, it was required to refund up to $34.1 million to consumers who were victims of deceptive credit card enrollment tactics at doctors’ and dentists’ offices around the country. Consumers signed up at the medical offices thinking the credit cards were interest free, but they were actually accruing interest of up to 26.99%, which kicked in if the balance was not paid at the end of the promotional period.
CareCredit had relationships with 107 professional associations and other groups as of December 31, 2013. Of these relationships, 63 were paid endorsements linked to member enrollment, according to the U.S. Securities and Exchange Commission.
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