Cuomo launches investigation

IngenixSeeing that people were being misled offers of healthcare credit cards, a probe into possible predatory lending and kickbacks in the healthcare industry has been opened by New York's attorney general.

General Electric Co's GE Money finance unit, which issues the CareCredit healthcare credit card, along with 10 other healthcare providers in the state were issued subpoenas by Attorney General Andrew Cuomo.

Due to healthcare services being offered by JPMorgan Chase & Co, Citigroup Inc, and Visa Inc units, they have also got the subpoenas from Cuomo.

The attorney general said it was being determined if lower-income patients and seniors were being driven into debts by health care lending practices.

Fast-talking sales pitches and deceit are often used to pressurise consumers for using CareCredit cards.

Cuomo said, "People are being tricked by misleading offers that have them paying for services they never received as well as interest charges they never knew about, and they are ignored and given the run around when they try to get their money back and this needs to be sorted out."

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