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Frequently asked questions

  • Miscellaneous
How do I know if I might be eligible for this claim?
If you used a CareCredit deferred interest or “no interest if paid in full” promotion loan to pay for a medical procedure and you were ultimately charged interest, you may qualify for this claim. A deferred interest promotion is a payment plan where, if you don’t pay off your entire debt within a set period of time, you can end up owing extra interest or finance charges on the original principal balance. Check and see if you qualify for this claim using the link above.
What is this case about?
Under consumer protection regulations, companies that offer loans – including loans for medical expenses, must fully disclose the full amounts of the principal, the finance charge, how the interest rate (APR) is calculated, and any additional terms involving promotional or deferred interest deals to a prospective borrower before the borrower agrees to take out the loan. This claim alleges that CareCredit coordinates with healthcare providers to market its loan products with deferred interest promotions, but without fully explaining the terms of the deferred interest promotion resulting in interest rates and finance charges significantly over what the consumer expected to pay when they accepted the deferred interest credit product.
What is a deferred interest or a “no interest if paid in full” promotion?
A deferred interest or a "no interest if paid in full" promotion is a type of financing offer commonly found in credit cards, including those used for healthcare expenses. Under this arrangement, purchases are not subject to interest charges if the entire balance is paid off within a specified promotional period, such as 6 or 12 months. However, if the balance is not fully paid by the end of this period, interest is charged retroactively from the date of the purchase at the card's standard annual percentage rate (APR). This rate is often significantly higher than typical credit card interest rates.
In the context of medical credit cards, deferred interest promotions are particularly popular. These cards, such as CareCredit, are often used by patients to finance medical expenses not covered by insurance. The danger lies in the potential for patients, who might already be under stress due to their medical conditions, to misunderstand the terms of the deferred interest. Failure to pay the full balance within the promotional period can lead to unexpectedly high costs due to the retroactive application of interest. This concern has attracted the attention of regulatory bodies like the Consumer Financial Protection Bureau (CFPB), which monitors such financial products for potentially deceptive or unfair practices. Senator Elizabeth Warren has also highlighted these issues, particularly in a recent senate inquiry into medical credit products.
What is the Truth in Lending Act?
The Truth in Lending Act (TILA) is a federal law that governs credit transactions. TILA requires companies extending credit to consumers to make certain disclosures about loan terms including interest rate, fees, and payment schedule, for all types of loans, including loans for medical expenses. You can read more about it here. TILA regulates companies like CareCredit that extend loans meant to pay medical expenses and who market loans with offers like deferred interest payment programs. If a company does not comply with TILA’s provisions, consumers are entitled to pursue a claim against the company for statutory damages. You can learn more about how to evaluate a medical expense financing product here.
What is arbitration?
Arbitration is a private dispute resolution process. Your claim will not be filed in court. Your claim will be decided by an arbitrator, who is a neutral person chosen by you and the company. We can select an arbitrator for you who is fair and neutral.
Is arbitration confidential?
Yes, arbitration is a confidential, private process.
Once I sign up, how does the process work?
Once you sign up, you’ll be asked to sign our attorney-client agreement. That allows us to investigate your private arbitration claim. Then, log in to your secure client portal. All information is strictly privileged and confidential and will only be used for your claim. Answer a few more questions, upload a few documents, and we’ll take it from there. We’ll analyze your claim and your losses, negotiate with the company, and, if necessary, pursue your claim in arbitration.
How do your fees work?
Our fees will be a percentage of the settlement or recovery we obtain for you. That amount will depend on the rules in the state you live in. We only receive a fee if you win, and you will never owe us any money.