Medical Credit Cards Drive Up Cost of Care, Says CFPB

Medical credit card holders have accrued more than $1 billion in deferred interest.

Hands with bills, money and credit cards.
(Image credit: Getty)

Specialist medical credit cards add to the financial stress facing hospital patients with medical debt, according to a newly published Consumer Financial Protection Bureau (CFPB) report.

It found that financial products sold to patients are typically more expensive than other forms of payment, including conventional credit cards, with card APR rates often reaching above 25%. The combined deferred interest bill on medical credit cards totals $1 billion, the CFPB noted.

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Tom Higgins
Contributor

Tom is a journalist and writer with an interest in sustainability, economic policy and pensions, looking into how personal finances can be used to make a positive impact. He graduated from Goldsmiths, University of London, with a BA in journalism before moving to a financial content agency. His work has appeared in titles Investment Week and Money Marketing, as well as social media copy for Reuters and Bloomberg in addition to corporate content for financial giants including Mercer, State Street Global Advisors and the PLSA. He has also written for the  Financial Times Group.

When not working out of the Future’s Cardiff office, Tom can be found exploring the hills and coasts of South Wales but is sometimes east of the border supporting Bristol Rovers.