Synchrony Bank Faces Class Action CareCredit Lawsuit Over Alleged Interest Rate Abuses

Synchrony Bank, the issuer of CareCredit, a popular credit card for medical expenses, is facing a class action lawsuit alleging interest rate abuses.

The lawsuit claims that Synchrony Bank has been charging excessive interest rates to CareCredit customers, often without their knowledge or consent.

Synchrony Bank's practices are under scrutiny, with some customers reportedly being charged interest rates as high as 25.99% APR.

This high-interest rate has left many customers struggling to pay off their medical debts, leading to financial hardship and stress.

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CareCredit lawsuits have been filed against Synchrony Bank, alleging that the company's CareCredit product imposes excessively high interest rates on unsuspecting customers. These high interest rates can lead to financial strain and exploitation of vulnerable consumers.

The lawsuit claims that CareCredit's interest rates can reach as high as 32.99%, with penalties for late payments pushing the rate as high as 39.99%. This is allegedly illegal under state usury laws.

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One case details a customer, S.G., who opened a CareCredit account in 2021 to cover emergency veterinary expenses. He was told CareCredit was the only viable payment option at the veterinary clinic, and under pressure, he accepted the terms of the loan.

S.G. continued to use CareCredit for personal medical expenses, but the financial strain of the high-interest loan became overwhelming. He argues that these rates are not only exploitative but also illegal under state usury laws.

If S.G. continues to make only the minimum payments on the original $2,000 loan, he will ultimately pay $7,752 over 14 years. This highlights the potential long-term financial consequences of high-interest loans.

The process for dealing with credit card debt lawsuits can be complex, but it's essential to understand the steps involved. Here's a simplified overview:

S.G. filed a lawsuit against Synchrony Bank, alleging that the bank's CareCredit product imposes excessively high interest rates on unsuspecting customers.

The lawsuit claims that Synchrony Bank violates state usury laws, breaches consumer protection statutes, and unjustly enriches the bank at the expense of vulnerable consumers.

The interest rate on S.G.'s CareCredit account reached 32.99%, with penalties for late payments pushing the rate as high as 39.99%.

S.G. argues that these rates are not only exploitative but also illegal under state usury laws, and that he will ultimately pay $7,752 over 14 years if he continues to make only the minimum payments on the original $2,000 loan.

According to the lawsuit, Synchrony Bank's CareCredit product is designed to exploit consumers in their most desperate moments, forcing patients, their loved ones, or pet owners to concede to its terms and pay extraordinarily high, illegal interest rates in exchange for lifesaving care.

The lawsuit alleges that Synchrony Bank's noncompliance with state usury law renders loans issued through CareCredit.com void.

Synchrony Bank made $911 million from interest and fees on 7.75 million CareCredit accounts in just three months, underscoring the significant profit generated from these high-interest loans.

CareCredit's interest rate is fixed at 32.99% for all new accounts, which can quickly spiral out of control, especially for those who are already struggling financially.

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The lawsuit claims that CareCredit exploits consumers' desperation, offering them loans with exorbitant interest rates that far exceed the limits set by state usury laws.

Usury laws in the United States are intended to prevent lenders from charging excessive interest rates on loans, and each state sets its own maximum allowable rate.

Synchrony Bank's CareCredit product blatantly disregards these laws, charging interest rates that are far beyond what is legally permissible.

CareCredit's high interest rates have been accused of violating usury laws, targeting consumers when they're most vulnerable.

The lawsuit claims that CareCredit exploits consumers' desperation, offering loans with exorbitant interest rates that far exceed state limits.

Synchrony Bank, the company behind CareCredit, made $911 million from interest and fees on 7.75 million CareCredit accounts in just three months, highlighting the significant profit generated from these high-interest loans.

President Biden's administration has cautioned Americans about the increasing risks of medical credit cards, warning that high interest rates can be a real threat to consumers' finances.

CareCredit's interest rate is fixed at 32.99% for all new accounts, which can quickly spiral out of control, especially for those who are already struggling financially.

The lawsuit argues that CareCredit's rates violate state usury laws, which are designed to protect consumers from unfair lending practices by capping the maximum interest rates that can be charged on loans.

S.G., a Columbia resident, filed a proposed class action lawsuit against Synchrony Bank after he accepted the terms of a CareCredit loan with an interest rate of 32.99% to cover emergency veterinary expenses for his critically ill cat.

Over the next two years, S.G. continued to use CareCredit for personal medical expenses, but the financial strain of the high-interest loan became overwhelming, he alleges.

If S.G. continues to make only the minimum payments on the original $2,000 loan, he will ultimately pay $7,752 over 14 years, highlighting the potential long-term financial burden of CareCredit's high-interest loans.

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