Markey asks consumer protector to investigate predatory medical loans

Markey wrote a letter to CFPB director Richard Cordray on Tuesday requesting more information on recent reports that some patients are being offered third party medical loans and credit cards to pay for procedures not covered by health insurance.

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The financial products often cover the entire expense of a medical or dental procedure for those who can’t afford to pay up-front, but the loans come with interest rates as high as 33 percent.

“Patients should not have to recover from mountains of unnecessary debt while also recovering from medical procedures,” Markey said. “We need to know more about these consumer financial products and services so we can protect patients that may be subject to abusive lending practices or exploitation.”

Markey said he fears these loans are being offered to the poor and elderly, adding that because healthcare practitioners are offering the loans to patients they are profiting along with lending institutions from the high-interest loans.

The senator told Cordray he wanted answers by Nov. 18 on what the agency is doing to protect consumers from the medial financing products.