State investigating GE's health care credit card unit

New York State Attorney General Andrew Cuomo Wednesday unveiled an investigation of CareCredit, a division of General Electric Co.'s consumer finance unit, saying users of its health care credit card were misled about terms.

Cuomo issued subpoenas to the GE unit and 10 health care service providers as part of a probe of what he called predatory lending involving the card, he said. Some providers pressure consumers into using the card and are rewarded with "kickbacks" in the form of rebates, the attorney general 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 runaround when they try to get their money back," Cuomo said in a statement.

CareCredit cards can be used for health care and veterinary expenses. The company promises no interest for as long as 24 months if bills are paid on time.

The attorney general said hundreds of customers complained they were misled on the card's terms and charged for services before getting them.

The card offers financing for 125,000 providers of services including dentistry, cosmetic surgery, veterinary medicine, hearing care and vision correction. The card has been endorsed by the American Dental Association and the American Society of Plastic Surgeons.

- Bloomberg News