Credit Card Protection Insurance

Most credit card companies today offer their cardholders a variety of add-on card features, including identify-theft, purchase, and payment insurance.

Payment protection insurance—also referred to by some companies as “payment protector plans,” “personal account protection,” or payment protection programs or services—generally permit cardholders to suspend monthly payments and interest accrual during unexpected hardships for a stated period of time.  Some plans may also include a balance forgiveness provision should the covered cardholder pass away.  Cardholders usually pay a monthly fee to secure this “protection.”

In recent years, however, many consumers have reported abuses by many credit card companies in their sale and implementation of these plans.  Common complaints include the following:

 

• Use of confusing sales tactics, including improper disclosure of the required monthly fee to entice cardholders to enroll in these protection plans
• Enrollment in protection plans without cardholders knowledge or consent
• Enrollment of persons who do not qualify for the benefits under the terms of the plan (i.e. perhaps enrollment of persons who are automatically disqualified due to their age)
• Once enrolled, failure to recognize the consumers’ “life changing event” as a covered event worthy of protection, and
• Failure to fully provide protection benefits to qualified cardholders

 

The above actions allow some companies to unfairly profit at the expense of unemployed, disabled, and elderly persons.  If you or anyone you know has been the victim of deceptive credit card protection plans, please contact us immediately.