A probe into alleged predatory lending practices involving health care credit cards has led New York Attorney General Andrew Cuomo's office to subpoena JPMorgan Chase & Co. and Citigroup Inc.
Last week, Cuomo subpoenaed 14 dental and health care providers that promote CareCredit, a credit card offered by GE Money, in response to hundreds of consumer complaints received by his office, see story.
Cuomo claims health care providers are charged a fee for the right to offer the cards and then a portion of the fee is rebated to them based on the amount of money generated through CareCredit sales. He claims this amounts to a "kickback arrangement."
Cuomo alleged seniors and vulnerable patients are misled about financing and often pushed into debt, and that health care providers receive kickbacks based on how much business they generate for the cards.
“Patients are being misled into paying for services they never received by the people they should be able to trust the most – their doctors,” Cuomo said of the ongoing investigation.
Cuomo also asked nationwide medical associations such as the American Dental Association to explain their endorsement of CareCredit. CareCredit is accepted by more than 125,000 health care practices across the nation.