Dental Patients will Receive Reimbursement from Springstone Financial
IDental patients who were misled into signing up for a deferred-interest payment plan with Springstone Financial will be receiving compensation from the company.
The Consumer Financial Protection Bureau (CFPB) ordered the company to provide $700,000 in refunds to victims who were lead to believe that the program was interest free. Interest, however, was accrued from the date of the customer's purchase and was charged if the balance was not paid in full before the end of the promotional period.
About 3,200 consumers who signed up for the product ultimately were charged and paid deferred interest.
From January 2009 through December 2014, Springstone administered its health-care financing program, which offered consumers two credit products: an installment loan and a deferred-interest loan product. The deferred-interest product incurred no interest if the balance was paid in full within a certain promotional period.
During this timeframe, a network of about 9,000 health-care providers was authorized by Springstone to offer its loan products and assist consumers in enrollment. The Bureau's investigation found that providers who were trained and monitored by Springstone to market the deferred-interest loan product misled consumers about the terms and conditions of the product during the application process. In some cases, dental office staff told consumers that the deferred-interest product was a no-interest loan and failed to mention they would have to pay 23 percent interest on the loan if they didn't pay it off in full by the end of the promotional period.
Springstone will notify affected consumers and issue a credit or send a reimbursement check.