The New York state attorney general has launched an investigation into credit cards for medical purposes. credit cards with a very high rate are marketed to patients that are in the office and need money now. These cards are sold as an instant cash advance to pay back bills, instead of an actual credit card. Article resource – Medical credit cards under investigation by Personal Money Store.
The operational workings of medical credit cards
Medical credit cards are a product offered by a few financing businesses. The financing is intended for medical bills, but it also charges a very high interest rate. The medical provider is usually paid within a few days of the credit card charge and gets a rebate (aka additional cash) depending on how much is charged on the card.
The investigation into medical credit card practices
Patients in a financial bind are likely to see medical credit cards as a good answer. Alleged deceptive practices have led to an investigation into these cards by the New York Attorney General. The high interest rates on these cards aren’t always fully disclosed at the time people apply for the card. The Attorney General has stated that the investigation is into the deceptive marketing and kickbacks involved with these cards. Some doctors may be violating their ethical or lawful responsibilities by pushing financial products.
The incredible costs of medical care
The provisions of the new health care do address the cost of health care, but many changes have yet to happen. Health care debt is the leading cause of personal bankruptcy in the United States. These medical credit cards are marketed to consumers as a way to get a no credit loan to pay bills. The end result is the high interest rates compound the debt problem. Until the high cost of medical care is addressed, paying for care could be a concern, with or without these medical credit cards.
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