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Chase axes Payment Protector plan

Florida residents who are members of Chase's credit card insurance plan, Payment Protector, may be unhappy to hear that the program is slated to end as of May 2014. Those who enrolled in the program were given up to two years of suspended payments if they lost their job or became disabled. Additionally, if someone passed away with a balance on their credit card, up to $25,000 of it would not be passed on to their estate. Chase charged a fee to participate in the program, which was usually one percent of a card holder's credit card debt.

Since the program is closing in the near future, many cardholders who paid fees for years to protect themselves or their family from credit card debt have done so for no reason. Some people paid thousands of dollars over the course of several years because they were members of the program, and none of the money will be refunded. This is galling in particular for individuals who wanted to ensure that their assets were distributed without having to pay off any money owed on a Chase credit card.

While Chase's actions are considered by many to be unethical, they are legal. As part of the terms of the agreement for the Payment Protector program, Chase clearly specified that the terms and conditions of the program could change at their discretion.

Along with the normal struggles associated with getting out of debt, unscrupulous creditors can make things even more difficult. If someone is unable to pay back their debt, filing for bankruptcy may help them set their finances straight. A lawyer could assist someone in understanding the process and file the proper paperwork on time.

Source: LA Times, "Debt after death: Chase pulls plug on credit card insurance plan", David Lazarus, October 07, 2013

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