2014年 10月 24日
Debt Cancellation - Protection You Can Live Without |
If you have ever seen a mob movie, you may know that one of the mob's favorite tactics is moving into a neighborhood, making the local businesses pay "protection" money so that their stores don't get trashed by the mob. In other words, its a shakedown. Give me the money, or else.
Debt cancellation policies for your credit cards, while not quite as bad, do sort of smell like a shakedown. Debt cancellation contracts are optional contracts sold after you have incurred a credit card debt. Usually, the are telemarketed as "protection" and "peace of mind" on your account, and are often made to sound almost as if they were a free service. The service they provide is payment on the account in the event of your inability to pay due to what is known as a "qualifying event", which is usually unemployment or sometimes death. Usually, the fine print on these contracts has many "gotcha" type clauses that eliminate the most common types of claims. As always, review the contract carefully prior to agreeing to ANY debt cancellation contract.
With the economy being difficult, and looming credit card legislation on horizon, the marketing of these contracts has gotten more and more aggressive. Banks and card providers love debt cancellation because it is a way to boost profits on an account, even if a borrower does not incur significant finance charges. It also allows the bank to lessen their risk, as the contracts are normally sold through a third party provider, such as AON.
What consumers need to know is that the protection is very expensive, and that historically, banks are reluctant to pay any claims that you may have in the event that you need it someday. Debt cancellation is normally marketed to a consumer as a "Point of Sale" product, meaning it is pitched when a consumer calls to activate a new card, inquire about an existing card, or on any other inbound customer service calls.You will also see multiple offers in statements that you receive in the mail.
Chances are most consumers aren't thinking about this coverage prior to calling, and could easily be talked into it because of the way representatives are instructed to present it. Most banks employ telemarketers to answer these types of customer service calls to ensure they are getting to a proper "penetration" level. This means that every hour, a certain number of consumers out of the total number who call must sign up. Typically, these telemarketers are paid by the signup, and use very misleading call scripts to lull consumers into thinking they are getting a no or low cost "benefit" on their account. In reality, the telemarketer only has to get a consumer to say "ok" on tape and this is enough to qualify as an "opt-in" for debt cancellation coverage. The charges are then added to the account. Be very wary when calling customer service, especially at the larger national banks.
If a credit card holder is truly interested in this type of coverage, they are better off shopping for a disability or term life policy which will provide greater value for much less money.
Neal Coxworth is an entrepreneur and a 17 year veteran of the consumer credit industry with experience in originating, underwriting and processing mortgage, student and consumer credit loans. http://www.lifeloansfreeinfo.com/ - For more insider analysis on debt and loans for consumers
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Read More:Vacation Rentals of Villas in Bali,Education Makes You Intellectually Strong,Quick Information About Nursing Assistant Certification,Computer Service Agreements: Looking Beyond The First Find,Pink Wedding Flowers - Wedding Love and Warmth and Pink Flowers
Debt cancellation policies for your credit cards, while not quite as bad, do sort of smell like a shakedown. Debt cancellation contracts are optional contracts sold after you have incurred a credit card debt. Usually, the are telemarketed as "protection" and "peace of mind" on your account, and are often made to sound almost as if they were a free service. The service they provide is payment on the account in the event of your inability to pay due to what is known as a "qualifying event", which is usually unemployment or sometimes death. Usually, the fine print on these contracts has many "gotcha" type clauses that eliminate the most common types of claims. As always, review the contract carefully prior to agreeing to ANY debt cancellation contract.
With the economy being difficult, and looming credit card legislation on horizon, the marketing of these contracts has gotten more and more aggressive. Banks and card providers love debt cancellation because it is a way to boost profits on an account, even if a borrower does not incur significant finance charges. It also allows the bank to lessen their risk, as the contracts are normally sold through a third party provider, such as AON.
What consumers need to know is that the protection is very expensive, and that historically, banks are reluctant to pay any claims that you may have in the event that you need it someday. Debt cancellation is normally marketed to a consumer as a "Point of Sale" product, meaning it is pitched when a consumer calls to activate a new card, inquire about an existing card, or on any other inbound customer service calls.You will also see multiple offers in statements that you receive in the mail.
Chances are most consumers aren't thinking about this coverage prior to calling, and could easily be talked into it because of the way representatives are instructed to present it. Most banks employ telemarketers to answer these types of customer service calls to ensure they are getting to a proper "penetration" level. This means that every hour, a certain number of consumers out of the total number who call must sign up. Typically, these telemarketers are paid by the signup, and use very misleading call scripts to lull consumers into thinking they are getting a no or low cost "benefit" on their account. In reality, the telemarketer only has to get a consumer to say "ok" on tape and this is enough to qualify as an "opt-in" for debt cancellation coverage. The charges are then added to the account. Be very wary when calling customer service, especially at the larger national banks.
If a credit card holder is truly interested in this type of coverage, they are better off shopping for a disability or term life policy which will provide greater value for much less money.
Neal Coxworth is an entrepreneur and a 17 year veteran of the consumer credit industry with experience in originating, underwriting and processing mortgage, student and consumer credit loans. http://www.lifeloansfreeinfo.com/ - For more insider analysis on debt and loans for consumers
Links:Msvcr80 dll,Configuration File,Microsoft Outlook 2003,Menu Bar Missing,Dax ErrorLocale.dll,Mfc70.dll,Msidcrl.dll,P3shared.dll,Primosdk.dll
Read More:Vacation Rentals of Villas in Bali,Education Makes You Intellectually Strong,Quick Information About Nursing Assistant Certification,Computer Service Agreements: Looking Beyond The First Find,Pink Wedding Flowers - Wedding Love and Warmth and Pink Flowers
by vincenttchavez
| 2014-10-24 18:57