In one recent credit card industry trend, many of the leading brands are cutting back on protection plans that some regulators have claimed to be unnecessary add-ons.
USA Today reports that one of the reasons for the scaling back of these programs is due to a recent settlement with the Consumer Financial Protection Bureau. Capital One will reportedly pay $150 million to settle a case brought by the CFPB, reimbursing some 2.5 million clients who were unfairly charged for extra fees.
The source reports that Bank of America, which often handles merchant services-related issues, will no longer offer its Credit Protection Plus and Credit Protection Deluxe products, while American Express discontinued its Account Protector program
“Save that amount each month, instead, and you’ll have a small emergency fund to help cover your payments if you lose your job, etc.,” said Gerri Detweiler, director of consumer education for Credit.com, in an interview with the newspaper.
The CFPB is taking other steps in order to aid consumers and hold financial institutions accountable. In June it announced it was seeking to make complaints against these firms public.