Credit protection fee

iVillage Member
Registered: 10-12-2005
Credit protection fee
3
Wed, 04-26-2006 - 8:53am

I did a balance transfer to an old cc account because they offered 3.9% for the life of the balance. I got my first bill and on there they charged me $75 for "credit protection." My question to the gang is, if I'm using this only for the balance transfer, can I have them remove the credit protection? Is this a bad move? My min. payment is $160, by the time you take out the extra fee on top of interest (about $25) i'm not putting hardly anything onto the debt at hand. Any thoughts on this?

Happy Wednesday everyone! The week is almost over...

:)

Brandy

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Wed, 04-26-2006 - 9:24am
I would personally NEVER pay for credit card protection. I read in one of the Dave Ramsey "stupid tax" stories about this guy who noticed one on his bill and called them and told them he never authorized it and to take it off. Little did he know they had been doing it for years and they credited some 3,000 back. Paid of his card to boot! It's a scam, especially if you have $$ in the bank to pay your minimums should you lose your job.
iVillage Member
Registered: 05-09-2005
Wed, 04-26-2006 - 10:26am
Hi,
I totally agree with Locochicas -- do not pay for credit protection -- it is the most expensive insurance you can buy and unless it said in very large print that they were requiring you to take this before they would approve the balance transfer -- you are not required to have it. I've never seen any banks REQUIRE this coverage. It is a total scam in my opinion. Call and cancel and make sure they credit back the #75.00 coverage fee they charged you. Good luck
Megan
iVillage Member
Registered: 03-27-2003
Wed, 04-26-2006 - 11:04am

Ditto everyone else. Credit protection insurance/coverage is a huge scam and a rip-off and another way credit card companies squeeze juice from stones. Insist that they remove it and credit the back charge.

:)

Heather