Is credit protection worth it?

Posted at 6:23 PM, Jul 19, 2012
and last updated 2012-07-19 18:23:15-04

RICHMOND, Va. (WTVR) -  Thursday, Henrico County based Capital One responded to reports that it was being fined millions of dollars for misleading and persuading two million customers to buy credit monitoring and payment protection programs. In some cases, customers were signed up for the programs without their knowledge, according to the Consumer Financial Protection Bureau.

Capital One responded by saying an outside company that it hired was actually to blame but that it was taking responsibility for those actions.

Payment protection plans are not unique to credit cards. The products are offered when you obtain a car or home loan as a means to ensure you can make your payment in the event that you lose your job or sustain a debilitating injury.

CBS 6 invited Tom Gallagher of the Richmond Better Business Bureau into the studio Thursday to ask if any of these products are worth buying and what consumers need to look out for before they add the additional services to their loans.

Gallagher summed up his visit by saying customers who have no access to medical insurance or owe large sums to their loans should consider it -- but should never feel rushed to make a decision.

The complete interview is attached.