CFPB Targets Specialty Financial Products Used to Pay for Medical Care

Earlier this month, the CFPB published a report on specialty financial products, such as medical credit cards and installment loans, which are sold to patients as a way to address the growing costs of medical care. The report focuses on some of these financial products, which patients once used primarily for elective care but now use to cover everything from emergency room visits to medications to regular checkups, as well as dental and vision visits and treatment. The report claims these specialty products are typically more expensive for patients than other forms of payment, including conventional credit cards, with interest rates often reaching above 25%. The report further alleges that these products often have deferred interest plans, which can prove especially expensive and unaffordable for patients.

The report addresses some of the purported risks to consumers of using financing products to pay for medical procedures and services. The report provides, inter alia, a background on the products, identifies potential financial risks to consumers, and offers a summary of the terms for a sample of specialty products. The report also addresses certain findings by the CFPB:

You can find a copy of the report here.