Showing results for 
Search instead for 
Did you mean: 

Credit protection going away....

New Contributor

Credit protection going away....

The peace of mind that credit card companies have been offering are going away. 


Under a settlement with regulators, Capital One will refund $150 million to 2.5 million customers and also pay $60 million in penalties. A statement issued by capital one said the refund will in most cases be under $100. 


Federal regulators charged that Capital One engaged in deceptive marketing tactics to pressure or mislead some consumers into buying payment-protection plans and credit-monitoring services when they activated their credit cards.



Bank of America quit pitching its Credit Protection Plus and Credit Protection Deluxe products in August and no longer offers the plans to new customers. The bank plans to exit that business next year. Existing customers will be given an additional six months of protection free, said Tara Burke, spokeswoman for Bank of America.


American Express stopped offering its Account Protector program — a debt-cancellation product — earlier this year and will discontinue the plan on Dec. 31


Chase said it stopped offering its Chase Payment Protector plans to new enrollments in October 2011 but continues to serve existing customers. Customers can cancel at any time.




WHY ? 


Marketing/consumer research director at, said one troubling issue with the protection plans involved hard-sell, fear-driven phone pitches that painted a picture of "Hey, you can lose your job." " Yet, dishing out $10 or more a month for coverage does not mean that your entire credit card bill would be paid. Typically, a credit-protection service would cover the required minimum monthly payment for a set time, maybe 18 months or two years.


Consumers need to take responsibility for their cards — not buy a low-return insurance plan, Woolsey said. "It can give you a false sense of security."


I did not see any of this hard sell with my prime cards but Creditone 1stpremier and Capone I can say I experienced this 1st hand


also the redundancy of the automated system (when getting your free report from a CRA when you were denied credit) of the importance of buying your credit score..


I did not buy it they way I seen it I was already paying in some cases AF and Interest why pay for more ? On a plan that wont cover me for the balance or if I am fired? Some of the plans will only cove you if State unemployment awards you unemployment 


has anyone ever bought this ? did anyone read the what we cover part ? i hate when a company slips somthing like that in fine print but a phone rep wont tell you that when you talk to them only that it will cover you when you lose your job... 


if you bought it from Capone expect a refund in form of a statment credit (my guess) if your'er still a card holder or a check if you closed the account



Message 1 of 8
Moderator Emerita

Re: Credit protection going away....

I never bought one of those plans because the one time I was interested in it years ago, I read the terms and conditions. The very nature of my job, commission only, prevents me from ever collecting should I need it. I figured, why pick up an "insurance plan" that won't pay? Didn't make sense to me - and the cost is extremely high. Personally, I'm glad that they are dropping the plans I always felt they were predatory.

Message 2 of 8
Valued Contributor

Re: Credit protection going away....

This is another example of people not taking responsiblity for their own actions. These plans were not forced onto anyone. Sure they always push it and talk about how great it is, but just say no. Whenever I ring Discover they bring it up and each time I say no. They have told me everything as to why it is good but the answer is still no.


I do not know any other company that has asked each time but it would be the same answer. If you are easily pressured into doing things you do not want to, then you really need to seek help.

Message 3 of 8
Established Contributor

Re: Credit protection going away....

If I'm ever tempted to buy these type insurance plans, I just open a new savings account and label it "capital one protection plan" or whatever is appropriate, then deposit the insurance premium in the account. I have one for cell phone insurance, one for extended warrantees, and an HSA for health insurance.



Message 4 of 8
New Contributor

Re: Credit protection going away....

"This is another example of people not taking responsiblity for their own actions."


+ 1


I learned that i dont have a balance(on anything) unless i have the cash to pay it off in full just incase somthing like this were to happen 



i should add i still dont have a home loan, but as soon as i have enough to cover 10 years of payments in CASH and the credit for a loan.... (HAHA) I Would like to be 700 plus on the three CRA

Message 5 of 8
Valued Contributor

Re: Credit protection going away....

Never bought it because I feared if I ever used it. I would expect in a week or two I would get CLD or other AA and end up with a closed account so I would have no credit,


I just tighten my belt and keep making more than the minimum payment, You can even pay a bill on the card like a $100 car insurance payment and then pay $100 to the card, minimum payment is met sure the balance may go up a few dollars because of interest but I never let my cards max out so isn't a problem for a few months. 

Cards: Chase Southwest 20k & CSR 10k & CSP 10k & Freedom 6.6k & Amtrak/Freedom 4.6k, FNBO DISC 25.1k Oregon Duck 5k, & AMEX BCP 32.5k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 12.5k, Paypal Extras MC 8.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 9k, Discover IT 16k and a nice stack of store cards.
Last APP/HP 5/15/2017 Marcus Loan. 30k
Message 6 of 8
Established Member

Re: Credit protection going away....

Politics aside, Is there a place to find out who is eligible for a claim and when they are paying?


I was sold payment protection and they got a few hundred dollars out of me before I realized what was going on. This was sometime in 2009-2010 when I wasn't watching my credit as much as I should have been. Thankfully I found this forum.


FICO: 754, (Walmart TU, 9/4/13)
Wallet: AMEX Gold, and cash.
Chase Freedom (5000), Capital One Venture1 (4750), CU Visa (5000), Discover More (5500), Walmart Discover (7500), Barclays Visa (2000)

Message 7 of 8
New Contributor

Re: Credit protection going away....

"Complete repayment, plus interest, to two million consumers: Capital One will pay approximately $140 million to all of the estimated two million consumers who either initially enrolled in a product on or after August 1, 2010, or who tried to cancel a product on or after August 1, 2010, but were persuaded to keep the product after speaking with a call center representative. In addition to the amount paid for the product, cardmembers will receive a refund of the associated finance charges, any over-the-limit fees resulting "


i would guess capone to be contacting you i was part of a class action vs Target years back and i recived check in the mail


i did find this but its based on UK side of the world ..i dont trust it... it looks MAJOR sketch 



Message 8 of 8