New haven care credit victim
New Haven,#2Author of original report
Sun, August 05, 2007
I read the entire collection of 59 complaints and the handful of rebuttals and was not surprised that my suspicions about this company and its corrupt practices have been confirmed. This is a sophisticated scam in which GE isolates its risks by "outsourcing" its credit business to a subsidiary created for this purpose and to telemarketing companies for customer service. Interestingly, it markets its credit services as trustworthy because they are backed by such a reputable company but the company itself goes to extreme lengths to be completely isolated from the activities of its financial subsidiary. Like many of those writing, I was told that there was no one to write to, no one to complain to, no place to send legal correspondence. One representative finally gave me the address that also appears on my statements, for filing a "General Inquiry"- there is no way to contact anyone within the company. When anything goes wrong, there is always someone else to blame. The dentists claim they know nothing about how Care Credit works but rebuttals on Care Credit's behalf, often blame the dentists if problems arise. GE and the dentists have found a way to engage in these corrupt practices without ever having to take any responsibility. The complaints are suggestive of the possibility that dentists not only receive "incentives" for making Care Credit their sole provider of financing out-of-pocket expenses but also for the absolute amount of business they generate for GE Money Bank. If so, this information should be public, or there is a conflict of interest. Patients expect their medical practitioners to have their best interests at heart and this is not possible if they have a vested interest in helping the agency that provides financing for their patients. My darkest suspicion is that GE knows that this business is very dirty and is anticipating lawsuits, but the business of these deceptive loan practices is so lucrative that even once the lawsuits hit, the company will come out ahead. They probably have included the cost of settlements of legal disputes in their balance sheet and have found that their late charges, exhorbitant interest rates, near-monopoly privileges, medical professional endorsements, and low administrative costs, more than make up for the problems they run into. Furthermore, GE has probably isolated its risks enough to protect its shareholders in case the entire business of marketing deferred interest loans at high interest rates as zero percent preferential loans for financing medical expenses "blows up." It can probably afford millions of dollars in settlement costs and still come out ahead. Also, its use of "incentives" for both providers and participants slows down the attainment of the "critical mass" needed for some kind of action. If I am right, CareCredit represents a dangerous precedent- we can expect more companies to adopt a policy of "It is better to say "I'm sorry" afterwards than it is to say "Please may I"" before engaging in questionable practices. Like most of the people writing, this was my first time. I am not a litigious person and I escaped CareCredit's many traps but these are such shockingly predatory and underhanded practices that I was moved to act. I am contacting the Connecticut Attorney General and many newspapers that do the most investigative reporting because I suspect those of us who complained are only the tip of the iceberg. I used to work for US News & World Report and know a little about getting these stories into the media. I will also be forwarding many of these complaints to lawyers I know. Interestingly, the rebuttals do not really dispute any of the allegations. It is also worth noting that those of us in "good standing" with Care Credit are offered an opportunity to be members of its "Review Board" which includes financial incentives. Quite possibly, the few rebuttals that report good experiences (most are not rebuttals but accounts of experiences with other companies and advice for Care Credit victims) are written by members of the "Review Board." My advice to my fellow Care Credit victims is to ACT. Isolated complaints nationwide serve mostly to vent frustrations but if we all contact the Attorney Generals and newspapers in our state and our congresspeople and let them know that there is a nationwide pattern, we might attain the critical mass necessary to interest lawyers that are as entrepreneurial as GE. I have no interest in obtaining any gain, just in stopping the deception. All I am after is transparency. The true nature of these loans and the practice of providing financial incentives to the medical professionals who agree to endorse CareCredit, needs to be out in the open and available to the public. As long as patients have all of the information, I have no problem with Care Credit being one of the many financing options available, but I wonder how the company would fare if they had to compete for the business of patients. And yes, the dentists should share responsibility for all of the problems these deceptive practices cause their patients. Health care providers owe it to their patients to select providers that will truly offer credit at preferential terms for medical expenses. It is OK for them to get out of the business of free financing, which probably does result in high administrative costs and many defaults, but they owe it to their patients to learn how Care Credit works and to keep it from ripping off their unsuspecting patients. Interestingly, I have not seen CareCredit brochures in any of the offices of my medical doctors- I think the Hippocratic Oath has successfully served as a deterrent. To all GE Money Bank/CareCredit victims: Let us ORGANIZE and ACT!