Units of JPMorgan Chase & Co. and Citigroup Inc. have been subpoenaed as part of a probe into alleged predatory lending practices involving health care credit cards, New York Attorney General Andrew Cuomo said Monday.
Last week, Cuomo announced he had subpoenaed a number of health care providers and General Electric Co.'s GE Money unit over its CareCredit health care credit card program. Cuomo claims some health care providers are using "fast-talking sales pitches" to pressure consumers into applying for health care credit cards, including those offered by JPMorgan Chase, Citi and GE.
Cuomo claims health care providers are charged a fee for the right to offer the cards and then a portion of the fee is rebated to them based on the amount of money generated through CareCredit sales. He claims this amounts to a "kickback arrangement."
"We will cooperate with the Attorney General's Office on this matter," said Samuel Wang, a Citi spokesman.
Stephen White, a GE spokesman, said the company plans to cooperate fully with the Attorney General's Office. "We look forward to learning more," White said.
A JPMorgan Chase spokesman declined to comment.