“As healthcare costs continue to rise and out-of-pocket costs increase with the rise in costly deductible medical plans, there is a clear need to empower consumers with access to financial solutions that give them choice,” Synchrony President and CEO Brian Doubles said on a conference call.
Disclosure issue
CareCredit said it provides training to providers and requires all consumer-facing employees and promotional materials to explain how promotions work. But providers don’t always tell patients about potential downsides, such as the risk of deferring interest, advocates say.
“They’re just really vulnerable and under pressure, especially if they need ongoing care from that provider,” Jennifer Holloway, a fellow at Tsedek DC, which provides legal assistance to low-income people with medical debt, told a CFPB conference last week.
“They feel that if they want to keep meeting, they have to pay the fees this way provided by their provider.
In 2022, about 23% of Care Credit transactions and about 20% of Wells Fargo’s Health Advantage products were not repaid within the promotional period and were charged interest, according to Warren and colleagues’ research.
