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Consumers Ripped Off By Credit Protection Plans

February 13, 2012 by Michael Primus

A recent American Banker, article disclosed that near 80 cents of every dollar paid by consumers for some form of credit protection offered through a major credit card lender was retained as profit.  Conversely only 20 cents of each premuim dollar was applied to any form of cancelation, forgiveness or the like.

http://www.americanbanker.com/issues/177_25/payment-protection-discover-cfpb-fdic-credit-cards-1046366-1.html?zkPrintable=1&nopagination=1

On a related note, In January 2012, Capital One Bank paid 13.5 million to settle allegations that it used deceptive sales tactics to sell its credit protection plans during the period of 2001 to 2005 in West Virginia.

http://www.wvago.gov/press.cfm?ID=599&fx=more

The obvious question: what about the other 49 states!!!!

 

Filed Under: Blog, Credit

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