Surprise! Credit card account “protection” products are a waste of money

April 5, 2011 by Todd Murray · Leave a Comment 

According to a Government Accountability Office report, account protection products offered by credit card companies, such as programs that suspend or cancel the cardholder’s debt if the cardholder loses his job, are basically a rip-off. The GAO study shows that in 2009, consumers spent $2.4 billion (yup, with a “b”) on credit card protection programs, yet only received $0.21 on the dollar back in the form of credit protection benefits. Of course, credit card companies pocketed the rest, some $1.8 billion (again, with a “b”) dollars. Think about this the next time you’re tempted to buy one of these alleged “protection” products.

GAO: Consumers Only Getting $.21 On The Dollar Out Of Credit Card Debt Protection Fees | The Consumerist | March 25, 2011

Share and Enjoy:
  • Print this article!
  • Facebook
  • Digg
  • TwitThis
  • del.icio.us
  • StumbleUpon
  • Technorati
  • NewsVine

About Todd Murray
I'm a consumer rights lawyer in Minneapolis, Minnesota. I sue debt collectors that harass and abuse people, defend debt collection lawsuits, and sue repossession companies that wrongfully repossess cars and trucks.

Please Share Your Thoughts

I welcome your comments, but please don't post questions about your personal legal problem in this public forum. Rather than posting your question here, I recommend discussing your situation privately with a lawyer of your choice. If you live in Minnesota, feel free to use the contact form in the upper right corner of this page to request an initial consulation with me. To protect your privacy, I will delete all comments that involve a personal legal problem.