The New York state attorney general has launched an investigation into credit cards for medical purposes. These cards, which typically have very high rates, are sold to patients that need cash now, typically right within the doctor’s office. These cards are sold as an instant cash loans advance to settle bills, instead of an actual credit card. Post resource – Medical credit cards under investigation by Personal Money Store.
Medical credit cards mean doctor’s payoff
Medical credit cards tend to be offered by one of a few financing companies. They are used to settle medical bills, and they come with high interest rates. The medical provider is typically paid within a few days of the credit card charge and gets a rebate (aka extra money) depending on how much is charged on the card.
The investigation into medical credit
Medical credit cards seem like an easy answer for patients in a bind. The New York Attorney General is investigating the alleged deceptive practices of these credit cards. Often patients are not informed of the high interest rates or payments on these cards. The kickbacks and refunds are a part of the investigation of the Attorney General. By pushing financial products within the office, some doctors may be violating their responsibilities.
Medical care’s high cost
Numerous of the cost-reduction methods in the new health care have not yet taken effect. Health care debt is the leading reason for personal bankruptcy within the United States. These credit cards are marketed as no credit loans to help patients pay back their bills. The end result is the high interest rates compound the debt problem. Medical credit cards grew out of the truth that medical bills are a huge concern – and until medical costs are addressed, products like this will exist.
