State sues clinic over alleged credit card fraud

By BOB VON STERNBERG, Star Tribune

Last update: August 12, 2009 - 12:42 PM

The state of Minnesota filed a lawsuit today against a suburban Twin Cities chiropractic clinic over the clinic's use of health care credit cards that the suit says were fraudulently issued to patients.

Announcing the suit against Express Health and its owner, Cory Couillard, Attorney General Lori Swanson called it "an especially egregious case that highlights a larger problem" of credit card fraud that has been increasingly occurring nationwide.

The suit alleges that Couillasrd "aggressively enrolled patients" with a CareCredit Credit Card and then placed charges of up to $5,040 on the patients' accounts without their knowledge.

Charging $30,000 a month or more to the credit card company, the clinic charged a total of more than $560,000 to its patients' accounts between the end of 2006 and last April, the suit charges.

About half of that amount was later refunded to some patients who complained, according to the suit.

"It may sound enticing at first," Swanson said, "but it quickly became unaffordable." The credit cards carried a maximum interest rate of 29.99 percent, she said.

The suit also was brought by the Minnesota Board of Chiropractic Examiners, which licenses the state's chiropractors.

"We gladly join the Attorney General in this effort," said Larry Spicer, the board's executive director. He declined to say what, if any, action has been taken against the firm, which has clinics in Lakeville and Apple Valley.

The clinic did not immediately respond to a call requesting comment.

Swanson said her office has fielded complaints from around the state about similar practices about health providers as diverse as weight-loss clinics to optometrists and dentists.

Depending on the outcome of her staff's investigation, "potentially more suits could be coming," Swanson said.

She also issued a consumer warning today to patients whose medical providers are marketing health care credit cards. They should be "wary of high-pressure sales tactics," according to Swanson's warning.