Thursday, January 23, 2003

Dental Financing Problems

Needing dental work can put a dent in your pocketbook. If you can't afford to fix your teeth, your dentist may offer you an alternative to paying the bill upfront. Dental financing in the form of credit cards may be the answer to necessary treatment that you otherwise would not be able to have done. However, before you agree to charge your dentist's fees, read the small print carefully and decide if you think that it's worth it.

Background

    Many dentist offices offer simple payment plans for patients who cannot afford a large out-of-pocket expenses. However, there is another alternative. Even with dental insurance and a payment plan, you may not be able to cover expenses associated with fixing your teeth or those of a family member. To resolve this issue, your dental office may offer you financing for the necessary work with a health credit card. Dental associations may be paid by the credit card company to endorse use of this type of financing among its dentist members.

False Sign Ups

    Complaints in states, such as New York and California, state that patients have been signed up for dental credit card financing without their knowledge. Instead, they thought that they were applying for a payment plan through the dental office, not with a third-party credit card company. The Western Center on Law and Poverty in California sponsored a bill that passed in 2010. The law does not allow dentists to ask patients to sign credit card applications under anesthesia or when not lucid.

Overcharge for Services

    State attorney general offices, such as those in New York and Minnesota, have alleged that patients were charged for services that they had not received. Also, complaints stated that cardholder were not told of the cost breakdowns prior to the charges being made. This resulted in overcharges for services that were not discovered until patients received their credit card bills. Dentists did not always agree to reverse some of the charges, and patient were stuck with bills for services that were not approved.

Finance Charges

    Complaints received in New York and California allege that promised low or no interest is for a short time only. Once the low-rate period expires, interest of over 25 percent may be charged retroactively, if the bill is not paid in full by that time. Also, late payments may incur interest rates of 30 percent for the entire amount of the charge. Since the terms of the card are not always given to the applicant, patients are unaware of the possible finance charges and late fees.

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