Chase will drop two credit cards related services
JPMorgan Chase & Co. is stopping providing two credit-card services to their consumers. These services are credit-monitoring service and payment-protection plan. The services were created to help consumers monitor their credit reports and make payments in case of financial hardship.
The reason Chase dropping these two services is that they want to simplify the set of products and services they offer customers. Also, such products have borne scrutiny in recent years and banks have started moving away from offering these kinds of services.
The credit-monitoring service provided consumers access to their credit reports from the three major credit bureaus, alerts in case of some fraudulent use of their identity, and fraud-protection services. The higher level of service even monitored public records.
The cost of service amounted up to $14.99 per month, depending on the level of service. The Consumer Financial Protection Bureau obliged Chase to refund consumers who was charged for this product without the written authorization. After refunding Chase decided to discontinue the credit-monitoring service by the end of the year.
The second product, the payment-protection plan for consumers experiencing financial hardship, will be ended in May 2014. This plan suspended minimum monthly payments and waived interest and other fees for those who lost their job or became disabled. It even offered balance cancelation in the event of the customer’s death.
Chase decided to provide the service at no cost during the last year of its work. These fee-free 12 months are a kind of a coverage which also gives consumers time to evaluate their options and make decisions.
These two products are not something exclusive and consumers can do most of those things on their own, which can be cheaper if not free. Most credit card companies are willing to work with consumers who have difficulties or unable to make payments. Consumers can request their credit reports from major credit bureaus for free once a year. The bureaus also offer similar monitoring programs for consumers. So it is always worth shopping around and asking if you truly need such service before buying it.