SACRAMENTO, Calif.—California Attorney General Rob Bonta is warning consumers that deferred-interest medical credit cards may carry significant financial risks despite being marketed as “zero interest” financing options, according to a statement from his office.
In a consumer alert, Bonta said such cards typically delay interest charges for a limited period but can result in substantial and unexpected costs if borrowers miss a payment or fail to pay off the balance in full before the promotional period ends.
“Even one missed payment or not fully paying off your bill on time can mean interest gets added from the very beginning,” Bonta said in the statement. “That can quickly drive up the cost of care and leave people with debt they didn’t see coming.”
Bonta urged consumers not to rush into signing up for deferred-interest medical credit cards, particularly while undergoing treatment, and instead to carefully review the terms of any agreement. He also encouraged individuals to consider alternative financing options, including loans from local credit unions.
Additional Steps for Consumers
The attorney general’s office outlined several additional steps consumers can take to reduce medical or dental costs, including:
- Seeking only services covered by insurance
- Comparing prices among different providers
- Asking family or community members for assistance
- Exploring programs such as the Medi-Cal Dental Program or low-cost dental services offered through California dental schools
Bonta also emphasized that, under California law, healthcare providers and their staff are prohibited from completing or submitting applications for these credit cards on behalf of patients.
The alert is part of a broader effort by the attorney general’s office to increase awareness of financial products that may pose risks to consumers seeking to manage healthcare expenses.
