CFPB goes after CareCredit 34.1 million in refunds

[ICANHASMUNY?]

http://www.consumerfinance.gov/newsroom/cfpb-orders-ge-carecredit-to-refund-34-1-million-for-deceptive-health-care-credit-card-enrollment/

 

 

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against institutions engaging in unfair and deceptive practices. To ensure that consumers harmed by the inadequate disclosures and deceptive enrollment processes are appropriately compensated, and that consumers are no longer subject to these unfair practices, the CFPB’s order requires that GE Capital Retail Bank and CareCredit:

•Create a $34.1 million reimbursement fund: Consumers who incurred charges in connection with their credit cards will be notified by CareCredit that they may file a claim seeking reimbursement. Claims will be reviewed by an independent adjudicator. More than 1.2 million consumers will have access to this independent review process and the reimbursement fund. The company will pay all expenses related to the administration of the fund.

 

•Enhance consumer disclosures: CareCredit will also be required to enhance the disclosures provided to consumers during the application process and on billing statements. The new disclosures will include improved descriptions of the deferred-interest product, and consumers will be warned in advance when the promotional period is ending. Representatives will contact most CareCredit consumers within 72 hours of the initial transaction to explain the product to them over the phone. In addition, for certain transactions of more than $1,000, consumers will enroll directly through a CareCredit representative and not through the doctor or dentist office representative.

 

•Improve consumer experience with service providers: CareCredit providers will be required to follow new transparency principles, including mandatory training for staff who market the CareCredit card to consumers. They will also be required to provide plain-language disclosure forms to ensure that consumers receive adequate information before signing up for a card

[moni08]

CFPB has come in like a wrecking ball on these creditors! Wow!

[ICANHASMUNY?]

I think they've been doing a great job - it's a long slog to get thru the mortgages, credit cards, student loans, payday lenders, the FCRA and the FDCPA.

 

Slow but steady, the CFPB hasn't lost a case yet.