Consumer Law

Despite the prevalence of this conduct, the law does not generally regulate doctors as bankers. Patients are largely left unprotected by current regulations, but they face significant problems when doctors act as bankers. Patients, vulnerable to their physicians? suggestions, often uncritically accept financial advice from their doctor. Instead of shopping for the best loan, they take the loan their doctor selects for them. But, doctors face a conflict of interest when choosing which lender to recommend because different lenders charge physicians different amounts when patients pay with loans. Also, patients are often left confused when doctors present piecemeal information about lenders, and patients end up taking out loans with unfavorable terms. 

In light of these problems, I offer a potential regulatory framework to regulate doctors acting as bankers. I suggest that regulations should require doctors to disclose the basic loan information that the Truth in Lending Act currently requires that lenders disclose. Moreover, policymakers should require physicians to disclose the financial arrangement between themselves and the lenders they recommend and, if they recommend lenders, to recommend at least three potential lenders to patients to encourage price shopping