New Bank Reform Rules Will Affect Orthodontic Industry

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The newest bank reform rules are bound to have an effect on the orthodontic industry. Orthodontists, hit hard by the recession, are now preparing themselves for another financial blow after bank reform.

According to Robert Bray, the head of the American Association of Orthodontists, the new bank reform rules can have detrimental consequences for the orthodontic industry. The newest bank reform rules may influence whether or not orthodontists are willing to offer credit to their patients.

It is no secret that dental braces are expensive. The cost of dental braces is often funded by extended credit. In fact, for many families, it is the only possible way they can afford braces which can cost $5,000 to $10,000 for orthodontic care.

The braces that an individual needs and how much they will ultimately cost depends on a variety of factors. The amount of dental work that the teeth require will also play into cost factors.

The teeth need to be prepared before dental braces can be applied and if there is issues with overcrowding or teeth that are severely misaligned, the cost for dental braces can become extreme. In some cases, jaw surgery is also required in order for braces to work after being applied.

The initial costs will often include the treatment plan from start to finish, but sometimes additional costs are incurred like the costs of using a retainer.

In a recession, where are families to turn for the funds they need for orthodontic treatments? Some families might wipe out their life savings and other families take out home equity loans or second mortgages.

Other individuals avail themselves of in house financing options. Yet, the in house financing options are not necessarily all that they seem to be. Even with a down payment on the dental braces a person can end up paying “hidden” interest on an alleged “no interest” financing option for braces.

Financing for braces is often associated with higher rates, despite the fact that financed braces are often interest free. People that serve up cash for braces are given considerable discounts in many cases, but cash, in a recession is clearly hard to come by.

It could be argued that cash paying consumers only get a discount because the “hidden” interest rate is not applied to the cash payment required. Some people argue that orthodontists are hiding interest payments on financing options and merely making it look like the finance plan has no interest at all.

With the differences between the rate that people pay for braces via financing options and the rate that cash paying consumers pay, some people assert that this may be a direct violation of the Truth in Lending Act. This means that it is against the law to promote an “interest free” financing option for dental braces when the financing is not really “interest free” at all.

Many people are finding this practice abusive and the new bank reform laws may change the way that orthodontists present financing offers or it may cause them to stop offering finance options entirely.