New York's attorney general on Wednesday said he has subpoenaed General Electric Co's
Attorney General Andrew Cuomo said his probe found that some providers have pressured consumers into using GE Money's CareCredit credit card through fast-talking sales pitches and deceit, and that CareCredit often pays kickbacks to the providers based on how much card business is charged.
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.
Cuomo said CareCredit is accepted by more than 125,000 health care practices nationwide. He said he has asked several nationwide and state medical associations, including the American Dental Association, to explain why they endorse CareCredit and whether they are paid for doing so.
We look forward to learning more about the investigation and working with the attorney general's office, GE spokesman Stephen White said.
ADA spokesman Fred Peterson had no immediate comment.
Cuomo, a Democrat, is running to become New York's next governor, and is widely considered to be the frontrunner.
(Reporting by Jonathan Stempel in New York; Additional reporting by Scott Malone in Boston. Editing by Robert MacMillan)