The exchange for the debt economy
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California Attorney General Rob Bonta is warning the public that deferred-interest medical credit cards may not be as good a deal as they seem.
In a consumer alert warning issued Friday, he discusses how these cards — often marketed as being a “zero interest” financing option and delaying interest charges for a limited period — could result in big and unexpected bills with a single slip-up.
“Even one missed payment or not fully paying off your bill on time can mean interest gets added from the very beginning,” Bonta said in a statement, in part. “That can quickly drive up the cost of care and leave people with debt they didn’t see coming.”
The attorney general encouraged consumers not to rush into signing up for a deferred-interest medical credit card — especially when undergoing treatment. Instead, he said people should make sure they fully understand the card’s agreement and even look into other lender options, including at their local credit union.
Other ways to try to reduce costs, according to Bonta’s office, include only asking for medical or dental services that insurance covers, comparing prices among different providers, and asking family or community members for help. Additionally, consumers can look into the Medi-Cal Dental Program or low-cost dental programs offered at some California dental schools.
Under state law, providers and their staff are not allowed to fill out or submit applications for these cards on a patient’s behalf. Anyone who believes they may have been misled or wrongfully pressured can file a complaint through the California Department of Justice’s website.
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