Balance Protector insurance rubbish.

[tng11]

Is it just me, or do all of the credit card companies try to pull this crap?

I've called RBC many times over the last while as they've sent me 2 cards that the stripe wasn't working properly, and 2 cards to replace ones that were apparently compromised. Anyways, they keep on pushing the "Balance Protector" stuff on me each time I call in. I say "No" and they keep forcing it on me. It's gotten to the point where I said "I will cancel all my ****ing accounts with you guys if you keep trying to sell me this crap" today when activating a card.

Also, why can some cards be simply activated by punching in the numbers, while I get directed to a call centre? My supplementary Avion was activated by punching in the numbers.

Same garbage has happened with BMO, MBNA and TD, if me and my family dies I can get protection on the $5 I put on those cards every month.

[Jucius Maximus]

They keep pushing balance protector for the same reason Future Shop pushes the extended warranty. It's very profitable!!

As for activation, I am not sure about that. But I can tell you one of the most annoying things was when I activated my Citi MC, they connected me to a person who had no access to my account balance information or any of the normal customer service facilities. Their only purpose was to try to sell me the balance protector crap and other "value added" features (a.k.a. garbage.)

They had to transfer me to someone else who could actually process my balance transfer request.

[Thalo]

You can activate your card by touch tone if you call from your home phone number.

I cancelled my MBNA card years back because I finally had it with them calling every single month to offer it to me. It is pointless, because anybody who has their finances under control does not carry a balance on their credit card.

I'm sure RBC and any other respectable bank has contact preference options where you can tell them that you don't want to be solicited to for certain products or at all.

[tng11]

You can activate your card by touch tone if you call from your home phone number.

I'm sure RBC and any other respectable bank has contact preference options where you can tell them that you don't want to be solicited to for certain products or at all.

I call from my home phone number every time. When my dad activated his Avion and the supplementary cards they were all automatic while I get the call centre 100% of the time. It's almost as if I'm a targeted customer for their advertising, maybe I fit the profile of a person that carries balances on cards?

MBNA also calls me every month at around the same time, but I just choose to hang up on them rather than waste my time listening to their sales pitch.

I may have went over the line with the CSR at RBC, but I just got angry after so many times of being sold the same thing when I said "No" over and over again... it was when he kept on asking "Why" that pushed me over the edge

[najibs]

I'm sure RBC and any other respectable bank has contact preference options where you can tell them that you don't want to be solicited to for certain products or at all.

Yup, it's the first thing I do whenever I get a new credit card and call in to activate. I tell them "I want to opt out of any marketing promotions you have so that I'm not contacted in the future."

As soon as you say this, they know exactly what you're talking about. I keep hearing horror stories about MBNA and Capital One, and I have an SPG and a Prime + 0.9 card and I have NEVER been contacted by them to sell me anything because of what I mentioned previously.

[tng11]

Yup, it's the first thing I do whenever I get a new credit card and call in to activate. I tell them "I want to opt out of any marketing promotions you have so that I'm not contacted in the future."
Duly noted. Thanks!

[VivienM]

It is pointless, because anybody who has their finances under control does not carry a balance on their credit card.


But if you tell them that, they'll tell you "oh, if you don't carry a balance, it won't cost you anything."

That's a great big lie. It is ONLY true if you preemptively pay the whole card off such that the balance is $0 on your billing date. But if they send you a bill for $1000 and you pay it at the end of the grace period in full, they'll charge you for the balance protection insurance...

(Yes, I got tricked by this one. Next time a telemarketer called and used that line... oops, he got a piece of my mind. :))

[VivienM]

Also, why can some cards be simply activated by punching in the numbers, while I get directed to a call centre? My supplementary Avion was activated by punching in the numbers.

Call me a cynic, but I think the supplementary card isn't sent to the call centre BECAUSE they can't sell that crap to anybody other than the primary card holder.

[VivienM]

They keep pushing balance protector for the same reason Future Shop pushes the extended warranty. It's very profitable!!

What's the usual price for balance protection? 0.5% of your balance?

[tng11]

Call me a cynic, but I think the supplementary card isn't sent to the call centre BECAUSE they can't sell that crap to anybody other than the primary card holder.
For what it's worth, when the primary cardholder activated his, it was also automated.

And yes I despise that pitch "that it costs nothing if you have no balance"- so misleading.

What's the usual price for balance protection? 0.5% of your balance?

It's almost 1%- 90 cents per $100.

[VivienM]

It's almost 1%- 90 cents per $100.

Okay, and if I grab the credit card bill on my desk (CIBC Dividend Platinum), the minimum payment is about 2% of the balance.

That demonstrates the highway robbery of this: every month, they add almost 1% to your balance, and then if whatever bad stuff happens, they pay 2% of your balance.

So, if every month, your CC balance is roughly the same, then... the customer loses out on this UNLESS they take advantage of it for half the time that they have the card. (Since two months of paying is equal to one month's benefit)

[Thalo]

Citi mastercard once called me two days in a row about balance protection, but I think that's cause the first person who called me screwed up and didn't change my contact preferences. I calmly told the 2nd person that I just rejected it the day before and to kindly stop calling me about it. Haven't heard from them since.

[BornRuff]

Okay, and if I grab the credit card bill on my desk (CIBC Dividend Platinum), the minimum payment is about 2% of the balance.

That demonstrates the highway robbery of this: every month, they add almost 1% to your balance, and then if whatever bad stuff happens, they pay 2% of your balance.

So, if every month, your CC balance is roughly the same, then... the customer loses out on this UNLESS they take advantage of it for half the time that they have the card. (Since two months of paying is equal to one month's benefit)

The only way you can "win" is if you die or get cancer, because then they will pay up to $10,000 to pay off your entire CC balance.

Of corse even then, if you regulary have a $10,000 statement balance on your card, your very likely to pay them $10,000 before you see any money from them. Your going to be paying $10,000 dollars in premiums on a regular $10,000 statement balance about every 9.5 years.

[thefleet]

Yeah I seriously HATE when you just want to activate your card and they offer these "services". And they always explain it first, usually want to cut them off right there. They still push saying its free for the first month and I keep repeating I dont want this service even if its free, seriously annoying. :mad:

[Yumeji]

You think that is bad? After showing my boyfriend how much money was going towards protection balance insurance on his VISA card to date, he tried to call in to cancel it. Apparently, they're only open during the weekdays when people are at work. You can't cancel the service at your local branch either. My boyfriend works in trades, so he can't exactly make a phone call while at "the office."

[srg83]

Balance Protection is a joke. I understand the point of it - and if it actually worked that way it would be a very good thing. However, it most definitely is a cash-grabbing operation.

It took me ten minutes on the phone just to cancel the protection on one of my cards; the rep was really adamant about me keeping my insurance, because "you never know what might happen" and "it will protect your credit". He tried to guilt me into keeping it, saying stuff like "it's only $11 now, but it could be much more expensive later". I ended up cancelling it in the end, but I was SO close to just hanging up and not bothering.

But here's why I cancelled it: beside the fact that I realized it's not really beneficial, the premium for me was sitting at $11. I'm trying to pay off the card as fast as possible. But I'm also paying off other debts, so this one right now is getting just the minimum payment. Of course most of that payment is going to interest, but looking at the numbers, my balance would pretty much hover around the same amount if I'm just putting the minimum toward the balance and they keep charging me the premium.

Which is why it's also useless - if I were to get into a severe accident or died, they were only providing protection of up to $2000 - but they of course only pay the minimum. As I said, that would make the balance hover, so yes, they'd pay the minimum, but as soon as they reach $2000 paid then that's it, they're done.

Yeah I'm definitely calling my other cards and cancelling; I'm now completely against it, and whether or not it's a small amount (my other cards have a limit of $500 or below, thank god), I just want to get rid of it out of spite mostly, now.

[MTL Guy199]

I agree. This thing has been pissing me off for a while now. I'm calling tomorrow to cancel it.

[dash riprock]

It's almost 1%- 90 cents per $100.[/QUOTE]



That is incredible. I average $5,000 per month my cards. That means I would be paying $45(5,000@.90) per month. My term insurance for $41/month gives me $500,000. What bandits!

[tng11]

That is incredible. I average $5,000 per month my cards. That means I would be paying $45(5,000@.90) per month. My term insurance for $41/month gives me $500,000. What bandits!
It's highway robbery, plain and simple. What really irked me was they won't stop shoving this crap in your face until you yell at them. MBNA even said "We have activated this wonderful service for you" and I told them they never got my permission and they were to remove it immediately (throw maybe 3 or 4 expletives in here).

The double-edged sword is, as a holder of bank stocks, yes I want ignorant people to take advantage of this service. :twisted:

[sonypcs]

Here is the process how to cancel this creditor insurance :

When you called them to activate the card or they call you to add this balance protection insurance on your card and if they say the first 30 or 60 days are FREE, you just say "YES, I will take it." because the rep usually will ask you why and keep persuade you to keep it..Then, in a few days, you will receive an insurance certificate in the mail. After you receive it, just send this back to the address located in that policy agreement or the address they have indicated on that policy.

I tried the ones with MBNA, CIBC, CT and RBC and I just do the same procedure if I dont want that. They will send you back a "letter of cancellation" and they wont call or ask you to sign that up again.