GE’s CareCredit Hit With $34M CFPB Fine

The Consumer Financial Protection Bureau (CFPB) has announced that it is ordering GE Capital Retail Bank to refund $34.1 million to CareCredit medical credit card customers due to what it called deceptive enrollment tactics, The New York Times reported on December 10.

The media outlet says more than 1 million patients could be eligible for compensation as part of the deal. Under the CFPB’s terms, GE must provide clear disclosure to customers, and contact patients within 72 hours to explain the product over the phone.

CareCredit is a delayed interest credit card, however, many consumers mistook its no-interest promotional period, believing that they were signing up for a plan with no interest.

“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,” Richard Cordray, the agency’s director, said.

For more on the order, as well as GE’s reaction, read the full article here.