Comments on: Should You Get a Credit Card Payment Protection Plan?

By: Andrew Bizer

Andrew Bizer — Wed, 30 Jun 2010 20:59:57 +0000

Hello All:

I am an attorney who handles these types of claims. Please call me at 504.619.9999 if you’d like to discuss how I may be able to assist you.

Best,
Andrew Bizer

By: kellie

kellie — Fri, 18 Jun 2010 02:53:49 +0000

I have been paying credit card projection payments w/ Discover for the last 2 years and have just received correspondence from the company that Fl – my state of residence does not honor it – when I call the company they assure me this is not true – but have received letters from their company that the program is not available. I can not get a straight answer and have paid several hundreds of dollars – what can I do?

By: Pat

Pat — Wed, 07 Oct 2009 13:09:57 +0000

Ye, well I’m one of those who took out the credit card protection and boy was I hit.I got laid off last year and I had 4 cards with this protecton and I do admit 2 of them paid off but the other 2 sears and Walmarts hasn’t. What a big rip. First I applied for my unemployment benifts under this, and they denied me because I work for my mother 10 hrs a week so there for I havent suffered a comlete job loss. When you consider 350 to 400 a week down to 70 a week is that not 90% job loss. Then I became very ill and applied for social security disablity on the doctors orders and they still turned me down because I had to be working a least 30 hours a week before I became ill and couldn’t work. I tried to plan for things like this and I don’t wont to say I am stupid because I’m not, But they are so smooth that I really think there ought to be a law against what these people do. especially when you are keeping up your debt until something bad goes wrong then they should stand by you as long as you are paying for this protection. But there is a lot of evil in this world and this is one of them.

By: John Adams

John Adams — Wed, 16 Sep 2009 17:56:56 +0000

Wow, after reading all the comments I decided to say no to the credit card protection, this is my fist time I have a credit card VISA and I recieved a call from the bank that issued it saying that I should get a protection credit card and give me only a month to review it, but after all your comments definetively I will say NO THANKS!!!

Thank you guys for sharing your experiences, I wish none of these things happend to you.
I always have the habit to pay everything at once and I do not like to make payments, only cash or right away.
The reason why I applied for a credit card is to have credit to buy a house in the future that saddly is what you need here in Canada.

Well, we learn something every day, thank you again for your comments.

By: SJM

SJM — Tue, 08 Sep 2009 03:29:55 +0000

I would like to share my experience with WAMU (now CHASE).

I put credit protection on my credit cards 2 or 3 months before I was laid off (I suspected the layoff). I was laid off at the end of November 2008. The credit protection doesn’t make the payments, it just keeps the interest from accruing, prevents any late payments, and keeps your credit intact until you are reemployed. My FICO scores were 681, 683, and 704(not great, but not bad either)

Unfortunately the cards were with WAMU. (they are predators). I called them to start the insurance coverage and they told me that all I needed was to have the coverage on one account and it would cover both accounts.(should have gotten that in writing).

I have jumped through all the hoops of proving that I am still unemployed by sending the Unemployment Dept. records to them each month.

When Chase(also predators), bought out WAMU, they told me that the larger of my cards was not covered because I didn’t have protection on it. I fought them on this and told them my agreement with WAMU said that it was covered. After much discussion on this, they finally started the coverage on the card. A couple of months ago in July 09, Chase notified me that they had closed the larger account, due to:

1. Total available credit bankcards is too low
2. One or more accounts have high balances compared to credit limits
3. Too many bankcards with high balances

(Also, if your account is closed, the credit protection is canceled).

Supposedly they ran a credit check through Experian. I requested a copy of my credit report (you can get it free if you have been denied credit or they cancel your credit card). I looked in the section where it shows who has requested your credit and Chase hadn’t done a check since January 2009. They for some reason didn’t close the other account due to the credit check. hmmmm!

It seems to me that they just wanted to start getting paid on the account. Unfortunately, I am still unemployed and just barely getting by, and am not going to be able to make the payment to them. I was hoping that I would be able to find a job and be able to start paying them back, but now they are forcing the issue and I am looking at filing for bankruptcy. I think that most people think that all the people filing for bankruptcy on the credit card companies is going to eventually hurt the companies. It really doesn’t hurt the credit card companies if you file bankruptcy on them, because all they do is write it off as a bad debt and it comes right off the top on their taxes. It only hurts you and your credit, which in turn, if a company wants to hire me and does credit checks, they won’t hire me because of the bankruptcy. So the credit card companies win and you lose any way you look at it.

I hope this experience helps you in making the decision as to whether you get the coverage or not.