Predatory lending probe subpoenas 4 LI doctor offices

Attorney General Andrew Cuomo Monday announced that he has subpoenaed four Long Island doctors' offices in an investigation into "predatory lending practices" by companies that offer health care credit cards.

Cuomo, who spoke at the Glen Cove Senior Center, said his office received more than 300 reports of people who complained about doctors who pushed them to apply for credit cards that allowed doctors to charge for uninsured medical procedures before they were completed, and bore high interest rates.

"There's a whole host of companies that come forward to exploit the problem of people not being able to pay for health care," Cuomo told the crowd of about 100 people.

Miriam Simon of Valley Stream told the news conference that her dentist recommended she undergo $14,000 worth of cosmetic dental work. He suggested, she said, that she apply for a credit card to pay for the cost, so she filled out the application for a CareCredit account without reading the fine print.

Simon, 33, a social worker, said she was then surprised to find herself billed the entire amount before she decided to have the work done. "I think it's fraud," she said. "I was not told that I was being charged upfront."

Simon and Cuomo officials declined to identify her dentist or where he practices. Cuomo's office listed two Long Island dentists among those who received subpoenas: Dr. Judd Lesser of Hewlett and Concerned Dental Care of Farmingville. Lesser did not return phone calls Monday and a Concerned Dental Care office manager said the company had no comment on the probe.

Cuomo said health care credit card issuer CareCredit, a subsidiary of GE Money, paid "kickbacks" to physicians based on the amounts patients charged to their credit cards. He said CareCredit encourages health care providers to push patients to open CareCredit accounts instead of using cash or other credit cards.

CareCredit spokesman Steve White declined to comment about any specific accusations but said the California-based company intends to "cooperate fully with the attorney general's office." He confirmed the company received a Cuomo subpoena.

"We look forward to learning more about this matter and working with them," he said.

Other companies Cuomo accused of engaging in predatory lending are Chase Health Advance and Citi Health. A Chase spokeswoman declined to comment. Citi Health did not respond to messages. The other Long Island health care operators subpoenaed are Lifestyle Lift, a Michigan-based cosmetic surgery provider with a Melville office, and Michigan-based American Laser Centers, which has four Long Island locations.

A Lifestyle Lift spokeswoman said the company does not "promote CareCredit as a preferred financial provider," but provides CareCredit brochures to interested patients. The company lists CareCredit and another health care credit card, Chase Health, among its payment options on surgery agreements, spokeswoman Rebecca Shaw said. Shaw said Lifestyle Lift "will respond to the Attorney General's inquiry promptly."

American Laser Centers did not respond to requests for comment. No criminal charges have been filed in the case, but Cuomo's office said the investigation will continue.