Wednesday, November 16, 2011

Is Credit Protector Overcharging its customers 1 billion dollars per month?

In a prior article, I calculated that the Credit Protector program is costing its customers 8 billion dollars a year in overcharges.The criteria I used to determine what is fraudulent requires estimating what the various credit protection insurance policies charge, versus what they pay out to their policy holders. 

I am estimating that credit protector may be taking in anywhere from 5 times to 10 ten times and perhaps significantly more, versus what it pays out, hence, we could call this credit protector insurance fraud.

However, when all the credit protector related compounded interest and monthly finance charges on the resulting higher and higher revolving credit card debt are factored in, plus penalties and fines when credit protector monthly charges take customers' over their credit limit, the credit protector overcharges could double to 16 billion dollars every year!

American consumers may be being overcharged by 1.33 billion dollars per month, or 1 billion dollars per month, take your pick. Is anybody going to do something about this mess? Just another reason that the occupy movement exists, no?

You can learn more about credit protector overcharging at

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