April 29,2009

• Credit Card Protection Protection, Pt.4
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  As was mention is the last part (Part 3), credit card protection policies aren't closely regulated and can make many promises that don't deliver the promises perceived by the buyer. Please refer to the associated news article entitled: "A Caveat Emptor of CC Payment Protection Plans". This legal precedent translated from the Latin means "Buyer Beware”. Yes, you the buyer, are the one at risk here. When you sign a contract, even if it's not fair, the burden falls on you. So, when you agree to a credit card protection plan which doesn't deliver, you're at the disadvantage to do much about it. It's important to read the fine print and ask those tough questions for clarification. According to Mr. Hardekopf, these are things to look for before signing that credit card protection contract:

  * Unemployment requirements: This is a big selling point for most of these offers. Don't be caught being one of the exceptions. Find out what the exclusions are, if there are any.
  * Check closely for age requirements: Often times you'll find maximum age restrictions.
  * Watch out for exclusions and time limits: Like credit cards, payment cycles are often designed with the advantage of the contract writer in mind.
  * Ask about disqualifying situations: Make sure you understand what's covered and what isn't.
  * What about the significant others? How about your spouse or other cardholders?
  * What are you really protected from? What happens if a payment is missed or your rates are hiked beyond what you can pay. How can you protect your good credit rating.
  * How binding is this contract, anyway? What are your obligations and how easy is it to back out and cancel the contract?
  * Count the cost: How much are you obligated for and what you are getting in return?

  Some things you'll find out early on. Like:
  o What if your credit card rating is already trashed?
  o How long must you have had stable employment?
  o How will other people sharing responsibility for the card be affected?

  All this fits into the equation of how much utility (useful value) the credit card protection plan delivers to you. Remember, it's "buyer beware and the sellers are not focusing on what they can give you but, what you can give them. That's just the way capitalism works.

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