Solutions MUST include Refunds.

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I predicted todays economic woes over two years ago, and I predicted it would be the credit card industry that would lead the way.

What can be done to fix Credit Protector? I would first like to spotlight what should not happen. I would not like to see a judge rule that Credit Protector must give free coverage for a year or two to anyone who signed up for Credit Protector in the past. That would be an intellectually elite ruling that creates what looks like punishment against the Credit Card Companies, but is actually nothing. As Shakespeare once wrote, "full of sound and fury, signifying nothing". Federal judges have actually used the free product ploy in the recent past to "punish" big corporations for breaking the law. Judges allowing lawbreaking corporations to give away their products for free or give a discount to their victims for future purchases, huh?

In my opinion, refunding 80 to 85% of what has already been paid into Credit Protector, plus accrued interest charges on the overcharges is the minimum that should be be refunded to ANYONE who has ever purchased the Credit Protector program. Many overdraft penalities that were assessed because Credit Protector fees actually put someone's account into the red need to be re-examined as well. If an "over the credit line" penalty caused a very bad chain reaction to occur to the person's credit, that too needs to be re-examined as well. Can you imagine being overcharged for a suit then being charged a penalty by the suit maker because you didn't wear the suit?

If a judge ruled that financial institutions must refund money plus interest charges to anyone who purchased the Credit Protector program it could cause some financial stocks to temporarily drop in value. But the likelihood is that by righting a great wrong that has been done to possibly millions of Americans, the stock market will ultimately benefit. Overcharging for financial services can never help the stock market and the people it serves in the long run. Charging for a non-existent service eventually harms everybody.

My plan is to immerse the proper governing agencies into reviewing programs such as Credit Protector. My hope would be that these governing agencies would require the credit card companies to REFUND ALL overcharges associated with the Credit Protector program. These refunds could be tens of millions of dollars, perhaps a lot more. Do you not want to see the Credit Protector program stopped, fixed, and a payout made to EVERYONE who has signed up for this treacherous program in the past?

  How to Fix Credit Protector.

There are several ways to fix the Credit Protector program. One way is to adjust the monthly percentage rate to fairly align with the what is actually being paid out. Although I am not a certified expert in this area, in my opinion the proper and fairer percentage rate should be between .09 to .19 percent of the total due, not the outrageous 0.79 to 0.89 percent that is currently being charged.

Or, the .79 to .89 percent can ONLY be charged on the amount of the credit card debt that Credit Protector is likely to pay off in the first year. If the maximum Credit Protector can payout in the first year is only 1,000 dollars of a 10,000 dollar debt, then the customer should only be billed the .79 to .89 percentage rate on the first 1,000 dollars of the credit card debt, not the entire credit card debt that the customer actually has! How can an insurance company charge coverage on money they won't be paying off in the first year?

Another method for fixing Credit Protector would be to simply calculate the most that Credit Protector can pay out in the first year of enrollment and then charge a reasonable percentage of 10% to 20% of that total. If the most that Credit Protector will pay out in a years time is 1,000 dollars, then the actual yearly billing should probably be between 100 dollars to 200 dollars, not 1,395 dollars that is currently billed.

I find it ironic that an insurance program that charges an arm and leg for Credit Protector coverage also includes coverage for losing a limb. I have avoided bringing up the loss of limb additional coverage because in my opinion it is an additional policy that is simply rolled into Credit Protector to make it seem like Credit Protector is a fair program.