Chase Cancels Credit Card Insurance Plan
For years, Chase Bank has offered its cardholders a chance to get insurance on their credit card balances for an additional monthly fee, usually less than one 1% of their credit card balance. Users who opt for this insurance, known as Payment Protector, would be able to delay payments on their cards for up to two years in the event of an emergency, such as the loss of a job or the death of a family member.
The Payment Protector program also covered up to $25,000 in credit card debt after a person dies, ensuring that the debt would not be passed on to someone else. Now, Chase is cancelling the program completely.
Beginning in May, 2014, Chase will no longer honor the Payment Protector plan.
One woman, Dorothy Cross, has paid over $16,000 in insurance fees during her time with Chase. At the age of 95, she still has $38,000 of debt lingering on her accounts. Once June hits next year, she will not have this same protection.
While a cancellation like this may seem unfair, it is not illegal. Chase states in its Payment Protector terms that it may change the insurance plan at any time. The terms also state that “if your account is closed by us for any reason, your enrollment in the plan will automatically be canceled without notice.”
If you are paying on a Chase Payment Protector plan, be prepared to have that cancelled in the near future, unless Chase changes its current plans.