Filed Under:Markets, Employee Benefits

N.Y. regulators put brakes on health card issuer

New York Attorney General Eric Schneiderman (AP photo)
New York Attorney General Eric Schneiderman (AP photo)

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.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.