The Citi Health Card -- a medical credit card from Citibank -- is one of the sneakiest credit products on the market today. The product includes "deferred interest" and a 30% interest rate. What this means is that after an introductory rate of 18 months, even after paying the minimum payment (or more) for the entire 18-mo period, the debtor incurs a finance charge for the 30% against the original balance.
I had an original debt of $4,000 that I had paid down to $2,881 over the 18 month introductory term of the Citi Health credit card. On the 19th month, after making payments every month, I was saddled with an additional $1954 debt due to the sneaky "deferred interest" clause.
Consumers are often signing up for this card when they have no other way to pay for out-of-pocket medical and dental costs. Worse still is that these products are exempt from federal truth-in-lending requirements, meaning that the medical professional doesn't even have to understand or explain the terms of the credit card to the consumer.
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