Low-income consumers are falling victim to the predatory marketing of credit for dental care with high interest rates, sometimes under unscrupulous circumstances, including:

 

Ø      Patients receiving lines of credit and being charged interest for services not yet received.

 

Ø      Consumers being unaware that they are signing up for a credit card – believing instead that they are signing up for a payment plan with the dentist’s office.

 

Ø      Patients being asked to sign credit card applications while under anesthesia or otherwise impaired.

 

 

AB 171 (Jones) would address these problems by:

 

Ø      Prohibiting dentists from arranging credit cards or loans for services that the consumer has not yet received unless the dentist first gives a list of the services and their costs.

 

Ø      Requiring dentists to refund to the lender payments for services not yet received.

 

Ø      Requiring dentists to provide consumers with a simple, clear notice about credit cards and loans as well as a proposed treatment plan. For consumers who do not speak English whom the dental office is serving in the consumer’s language, the notice must be provided in that language.

 

Ø      Prohibiting dentists from arranging credit cards or loans when a consumer is under the influence of anesthesia.

 

Ø      Requiring staff model dental plans that extend or arrange for credit ensure that their dentists comply with these provisions and give patients refunds within 15 days of their request.

 

 

AB 171 is similar to SB 1633 (Kuehl) in 2008 which was vetoed. The veto message indicated that the Governor did not have sufficient time to review it due to the budget stalemate. SB 1633 received zero “no” votes on the Assembly floor and three “no” votes on the Senate floor. It was supported by the California Dental Association and many consumer organizations.

 

For more information contact Elizabeth Landsberg, Western Center on Law and Poverty, 916-442-0753 ext. 18, elandsberg@wclp.org.