Defaulted on credit card paid for credit protection for $9 a month for 3yr. can they still take it to court?
Monday, June 7th, 2010 at
5:13 am
Card had 350 limit they want 651,Finanically in a bind dont have it .Just wondering what is deal paying credit protection if it doesnt help when you need it
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credit protection doesnt pay if you decide to default!
it pays if you are injured or unemployed and unable to make payments. It only make the minimum payment for a specified or qualifying time. It doesnt eliminate debt
Get a copy of the credit protection. See what the limitations are. If you qualify, you can apply for the claim. Usually they pay no more than the minimum on those accounts for a period of time depending on the Agreement.
You have to see the terms of the Agreement to see if you qualify.
If you qualify under the terms of the Agreement, and they don’t pay and you can use the credit protection company for fraud.
Most advisors suggest not to use this as it is more expensive than it is worth.
Credit protection is a farce, they never pay unless you take it to court. You’d have to check the individual terms to find out if they should pay it, many have protections for them for everything meaning the customer is screwed.
They can take it to court but most likely they will just write it off. It would cost them too much to go to court and if they did and you had a good lawyer, they’d lose. If you can’t pay you can’t pay. You might be able to negotiate a lower payment or payoff amount. Even if you don’t pay, it may hurt your credit score. But for $651, all you’ll get are threatening letters from so called lawyers that will do nothing but harrass your mailbox.