A health care credit card issuer has agreed to change the way it promotes and runs its card program, New York state officials said today.
New York Attorney General Eric Schneiderman said CareCredit L.L.C., a unit of GE Capital Retail Bank, is entering into a settlement agreement with Schneiderman's office.
Officials said the settlement agreement calls for GE Capital to:
- Keep consumers from charging any transaction over $1,000 on a CareCredit card within three days after a consumer has submitted an initial application. A consumer who does charge a large transaction on a new card during the three-day "cooling off" period will be able to reverse the transaction, officials said.
- Prohibit providers from taking CareCredit payments unless they already have provided the services or will provide the services within 30 days after accepting payment for the services.
- Require providers to do a better job of explaining the card program rules to consumers.
- Include a clear description of how the card works at the top of the application packet.
The settlement agreement also calls for GE Capital to set up an appeals fund to help about 1,000 consumers who have filed complaints about the card program.