CareCredit Interest Rates Class Action Lawsuit Overview

Who: A consumer has filed a class action lawsuit against Synchrony Bank.

Why: The lawsuit claims that Synchrony Bank offers exploitative high-interest CareCredit loans to consumers in need of financial assistance during emergency medical situations.

Where: The CareCredit class action was filed in a federal court in New York.

The class action alleges that CareCredit loans offered by Synchrony Bank carry “extraordinarily” high-interest rates, which exceed what is permitted by New York’s state usury law. The loans are said to be offered to consumers during vulnerable moments, making it difficult for them to understand the potential financial consequences of these loans.

Interest Rate Claims

The lawsuit states that the interest rate on a new CareCredit account can be as high as 32.99% per annum as of May 30, 2024, with late payments pushing the interest rate up to 39.99%. The plaintiff argues that CareCredit’s products exploit flaws in the medical and veterinary services industries, leading consumers into unmanageable debt.

Allegations Against Synchrony Bank

The plaintiff accuses Synchrony Bank of unjust enrichment, breach of good faith and fair dealing, and violating New York’s Deceptive Trade Practices Statute and Usury Laws. The plaintiff seeks a jury trial, declaratory and injunctive relief, as well as compensatory, punitive, actual, and statutory damages for themselves and all class members.

Previous Regulatory Action

In June 2014, the Consumer Financial Protection Bureau ordered Synchrony Bank, formerly GE Capital Bank, to pay $34.1 million to refund over 1 million consumers who believed they had signed up for an interest-free CareCredit credit card.

Case Information

The CareCredit interest rates class action lawsuit is titled S.G., et al. v. Synchrony Bank, Case No. 2:24-cv-05788, in the U.S. District Court for the Eastern District of New York.