Another one of the consumer protection laws that was enacted as part of New York Governor Hochul’s Fiscal Year 2025 Budget will prohibit deceptive acts and practices in credit card applications. As of October 20, 2024, New York General Business Law Section 349-g will introduce restrictions on the applications for and use of credit cards and medical financial products.
The key provisions of this law are as follows:
1. Definitions:
· Medical Financial Products: Includes medical credit cards and third-party medical installment loans.
· Health Care Provider: Refers to a health care professional licensed, registered, or certified under Title 8 of New York’s Education Law (such as physicians, nurses, chiropractors, therapists, etc.)
· Medical Credit Card: A credit card issued specifically for the payment of health care services, products, or devices provided to a person.
2. Restrictions:
· Hospitals, health care providers, or their employees/agents, are prohibited from completing any portion of an application for medical financial products for the patient or otherwise arranging for or establishing an application that is not completely filled out by the patient.
· Applications that are entirely filled out by the patient will help to ensure informed consent and prevent undue influence.
Health care providers must review and update their procedures for offering medical financial products to ensure compliance with the new law, and staff training will be necessary to ensure that all applications for medical financial products are handled in accordance with the new requirements. A violation of this new law can result in civil monetary penalties, enforced by the New York State Attorney General’s Office.
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This Legal Briefing is intended for general informational and educational purposes only and should not be considered legal advice or counsel. The substance of this Legal Briefing is not intended to cover all legal issues or developments regarding the matter. Please consult with an attorney to ascertain how these new developments may relate to you or your business. © 2024 Law Offices of Pullano & Farrow PLLC