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