“These new forms of medical debt can create financial ruin for individuals who get sick.” “Fintechs and other lending outfits are designing costly loan products to peddle to patients looking to make ends meet on their medical bills,” CFPB Director Rohit Chopra said in a statement. People with credit scores below 619 incurred interest more frequently, perhaps because “they were more likely to have shorter periods before they were charged deferred interest,” the agency added in its report. “Many people would be better off without these products for two reasons: the financial burden can be higher and their ability to challenge an inaccurate bill is complicated when they are working through a third party financial institution,” the report said.īetween 20 alone, patients paid $1 billion in deferred-interest payments, the CFPB said. And although some of the products come with deferred-interest promotions, that arrangement may wind up costing consumers more if they’re unable to pay their full balance within a certain timeframe, since they’ll owe interest on their entire purchase amount, according to the CFPB. Leave this box unchecked if you do not want us to show you any advertising.While interest rates on medical credit cards and installment loans vary, they’re generally higher than those attached to more standard credit cards and can climb to 25% or more, the agency said.

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Ruin rising