GE Care Credit Card Exposed
As someone who has had way more medical bills than you probably will during your entire life, I know a thing or two about financing them with credit cards, to say the least! However no matter how steep a bill was, I never once used the Care Credit card from GE Money to pay. Why not? Because in my opinion it is the absolute worst, most unethical credit card in all of America.
Care Credit vs. “Normal” Credit Cards?
This medical credit card is just that – a card that can be used to pay for services rendered at participating healthcare providers (according to their website, nearly 140,000 practices in North America accept it for payment). You can’t use it for purchases elsewhere.
However unlike a “normal” major credit card, the GE Care Credit operates quite differently. The biggest difference is the way GE Money structures the 0% promotional offers.
When a Visa, MasterCard, AmEx, or Discover touts a 0% rate on purchases, that’s usually what you end up getting… 0% for the advertised period of time.
Contrast that to Care Credit, who technically offers 0%, but the catch is that in order to get it you have to pay off the purchase before the promotional window is over (which is usually 6, 12, or 18 months).
The details discuss what happens when you don’t pay it off:
“On promo purchase balance, monthly payments required, but no Interest Charges will be assessed if (1) promo purchase balance paid in full in 6, 12 or 18 months, and (2) all minimum monthly payments on account paid when due. Otherwise, promo may be terminated and Interest Charges will be accrued at the Purchase APR and assessed from purchase date.”
And when you look at the interest rate listed on the GE Care Credit card application, that’s quite a frightening possibility…
The Hook, Line, & Sinker
Now in all fairness, many department stores and other retailers use the same 0% financing trap on their credit cards. However, there are a few reasons I don’t consider the Care Credit card to be on equal ground.
Reason #1: We’re talking about healthcare here, folks
What makes this so repulsive is that GE Money is preying on people when they need help the most. Sure, there are many people who use the program to pay for cosmetic surgery and other elective procedures. However on the other hand, there are also many who use this credit card to pay for legitimate medical needs.
It’s bad enough to pull this financing stunt when someone’s buying a mattress or new TV, but is it really necessary to stoop so low when someone is using it because they don’t want to go in public since they have no teeth?! Come on GE Money, can’t you give people like that a better deal?
Reason #2: Many doctors peddle them in a way that’s dubious, at best
My roommate had some cavities he needed to get filled and according to him, the dentist purportedly told him he had to do a credit check. In actuality it was far more than a credit check… a Care Credit Card arrived in the mail a few days later! My roommate was shocked, as he wasn’t aware he was applying for a credit card.
Do a Google search for GE Care Credit card reviews or Care Credit scam and you will see countless other alleged stories, similar to what happened to my roommate. Many practices won’t stoop that low, but they will get patients to apply for Care Credit using hard sells and half-truths (both of which I’ve heard first-hand).
But it doesn’t stop there… according to a lawsuit filed by Minnesota’s state attorney general, a chiropractor office allegedly “submitted applications in the patients’ names and falsified patient’s yearly income information to make sure they qualified” as mentioned in this New York Times article.
Reason #3: You may be charged for work that’s never done
Let’s say you were having a multi-part medical procedure done. I’ll use a dental implant as an example, since I happen to be in the middle of getting one. My treatment plan goes like this…
- Step 1: The tooth is extracted via a minor (yet expensive) surgery.
- Step 2: After 3 to 4 months of healing, there’s another surgery to screw the implant into the jaw bone.
- Step 3: After another few months of healing, it’s ready for the fake tooth to be placed atop the implant.
The total process takes about 9 to 12 months and this is fairly typical. If you’re paying out of pocket, the customary thing to do would be to pay just before each procedure is performed. I had step 1 completed in late spring and that’s all I had to pay for at the time (using my British Airways Visa card if you’re curious). Step 2 won’t happen until October and I won’t have to pay for that until right before the surgery.
However what’s been happening with medical credit card customers is that they sometimes are reportedly being charged upfront for their entire treatment plan (whatever it may be) before the work is actually done.
That’s just one of many complaints received by the New York Attorney Generals Office where customers were charged for work, even though the work had not been completed. Worse yet, there are even complaints where the medical practice went out of business, leaving the customer with a big fat medical bill and no work completed:
“A Bronx resident had $17,500 worth of implants charged to a CareCredit account up front by a dental provider. The provider went out-of-business before completing the work. CareCredit repeatedly refused the consumers requests to refund the money.”
Even if the doctor/healthcare provider doesn’t go out of business, what makes this particularly troubling is that when charged in advance, you might be paying interest charges that you otherwise wouldn’t be, if you were paying as you go.
Last but not least, let’s say you begin a treatment plan that’s been prepaid and decide it’s not for you. Will you get refunded for the remaining treatment you’ve paid for but not received? That might be a huge uphill battle.
Do medical credit cards ever make sense?
In short, probably not. At least not with the way they are currently structured.
We’ve already gone over why the Care Credit interest free financing is inferior. Why would you undertake the risk of their 6-18 month 0% deferred interest plan, when there are major credit cards that offer 0% on purchases for the same amount of time, but without the deferred interest trap?
Does it make any sense whatsoever? The only reason I can think of is if your credit score is so awful, that you can’t qualify for a major credit card and this card from GE Money is the only one that will approve you. But for everyone else, why risk it? Even if right now you think you will have no problem paying it off in time, what happens if your income or financials change later on?
GE Money does offer a fixed monthly payment plan without deferred interest, but even that seems like a losing proposition…
With this option, you will pay a flat 14.90% from day one (no deferred interest period). Is 14.90% the worst APR on the planet? No. In fact, it’s comparable to the purchase APR many major credit cards charge nowadays. However the fact is there are plenty of major cards out there with lower purchase APRs than that (plus they might toss in 0% for a period of time). So this second option from GE Money isn’t a winner, either.
Written Oct. 2011
What I am noticing is that people don’t understand promotional terms. If you dont pay off a deferred interest promotion in full by the expiration date your accrued interest from the original date of purchase will become due. It seems like an easy principle to understand. Paying the minimum payment will not pay off the promotion by the expiration date (in most cases)… If you dont get the terms your better off paying cash or just dealing with that bum tooth.
IT IS A GOOD CARD…JUST PAY ON TIME ..THEY HAVE VERY GOOD RATES!!
I now owe Care Credit lots of money for dental bills Much of it is interest and it is so high I can’t pay it. I’m making arrangements to get credit counseling to arrange to pay it along with other cards I owe less money to.
Today I told them I was in the process of doing this and the guy I talked to said they don’t settle with credit counselors. I’ve certainly have had trouble settling with them. I’ve paid over $1500 this past year and almost all of it has gone to interest. It seems the right hand doesn’t know what the left hand is doing and I’m really tired of their game. Most of the other creditors understand my cut in pay and they are willing to work with me, but Care Credit seems to be only interested in getting as much money from me as possible. They don’t seem to be very caring!
My son and I both have CareCredit accounts and have had no problems. We also have other GE accounts, have had no problems to date.
I see people complaining about services being billed before the work is done, or a provider going out of business and they asked CareCredit for their money back. It’s not CareCredit who owes them the money. They need to take the provider to court to get their money back. And it’s not CareCredit who bills the services before the work is done.
So far all I see is people complaining about bad service but the complaints are about the providers and not the credit card company. CareCredit is not responsible for the services provided. They paid the provider on your behalf as agreed.
Not getting the service that you paid for is fraud by the doctor. All credit cards have fraud protection. That’s the law in all 50 states. Care Credit has an obligation to go after service provider, not customer.
I paid my account off in full. Some fool from I think the middle east (or other foreign country) calls to tell me I have a $200 balance because I didn’t look at my balance right when I paid it off. I do this online so I have a printed receipt. I asked to speak to someone in the United States where I did my business and finally get some smart alec 20 year old who proceeds to be flippant and tells me the same thing. Obviously I know how to read a statement. This is to get extra money and I’m not bending over for it!!! I plan to wait til they report it and then dispute it.
Shame on GE Care Credit for outsourcing our business. Love having my info on the other side of the world!!!
I don’t understand what these people are complaining about.
It’s interest free for X amount of time. If you dont pay it in X amount of time you pay the interest.
I had the same thing with Bobs Furniture CC and Best Buy CC… 0% interest if I pay in time. Whats so hard to understand about that ?
I agree with the other poster stating its more about the ethics of the doctor and how they charge you.
I have a GF who had cosmetic surgery and she had to pay up front before the work was even done. I just took my dog to a vet and the bill was 900 and I had to pay before all the work was even done…. seems common practice to me to have to pay before all the work is done.
readcharles and belinda. i had them and if you pay like you agreed you’ll have good credit
No hidden fees, and GE tells you The amount must be paid off during the promotional period. I used GE Care Credit and was satisfied, but then I actually read the agreement before signing up for anything. Those who do not, deserve what they get. Stop crying and learn to read.
I had them…and I agree with charles. read and pay on time.
I have used Care Credit for a number of years ~ payoff as agreed and you have no problems. I have had no problems with the card ~ ever! I agree with Charles – read the agreement, have the discussion with you dentist/doctor/provider BEFORE giving them your card or signing up – EXACTLY what you should do before signing or committing to anything.
The only place to report Care Credit is
Consumer Financial Protection Bureau
P.O Box 4503
Iowa City IA 52244 1-855 411-2372
http://www.consumerfinance.gov must put your complaint on website they will investigate. They handle all credit card problems. It was mucho research to find out.
The nightmares I have had with them for 2 years are indescribable. They feel like a scam. If you want to allocate your payments to the highest interest rate bill you have to call them, for me it was up to a 1 hour wait (red flag). Why cant we do it online?
From one fed-up Cali girl
I have used this CareCredit card several times! I read the agreement, I knew exactly was I was getting into – I knew that if I DID NOT make monthly payments by the due date EACH month, I would be charged the interest from day one.
If you CANNOT make the monthly payments DO NOT get this card, or any other credit card for that matter!!! Every review I’ve read about this card states that the deferred interest was charged because, quote-I was one day late, or they said they didn’t receive my payment, or I didn’t get a bill…come on people! This article reviews unethical practices of the medical field, not the CareCredit card… doctors and dentists charging patients for procedures in full before work is done… this is not the fault of CareCredit. I CANNOT afford health insurance and I will continue to use this card for my needs… THANK YOU CARECREDIT…
I hate CareCredit/GE Money Bank with a passion. They have they worst service and their online registration does not work. I’ve tried numerous times to register and “re-register” and have spoken to a customer representative and she was no help at all. I was on the line for over 15 minutes explaining to her my trouble with their online registration, and all she kept telling me was that I was entering in the wrong username and password that I just created. Anyway, I filed a complaint with the Better Business Bureau (BBB) and CareCredit responded as I knew they would. They said that I didn’t know to use their website.
I agree: “Whatever you do…DO NOT apply for GE Care Credit! You’re better off going to a bank and paying a higher interest rate!”
Gosh I am glad I read this ahead of having my procedures done, I will pay part cash and use my MC. We thought this 0% was a good deal since my dentist recommended it to us?! Now I am not sure if I trust him for other things!! Help…
My Dentist did too.
I agree exccept I didn’t see this review. I sent two payments, one was recorded and the other wasn’t. They claim they didn’t get my payment and charged me a late fee besides adding that 2nd payment to my next payment. I think they got the payment and want to double charge me for my 2nd payment. I have my receipt, they told me my receipt didn’t matter. They are so wrong. If they don’t get it straightened out, I am going to have someone legally look into it.
Thank you for writing this truthful review of a very bad division of GE.
Whatever you do…DO NOT apply for GE Care Credit! You’re better off going to a bank and paying a higher interest rate! Exactly what you are talking about just happened to me.
My dentist told me to get the GE Care Credit. They said we’d have 18 months to pay it off interest deferred as long as we made more than the monthly payment ($40). For the last 6 months I’ve been paying $85 and always one week prior to the due date. I just made a payment of $85 and a total of $1.54 (yes, $1.54) was applied to the payment because I did not pay off this promotional crap.
My next call is to the dentist. Again do not ever go with GE Care Credit.