Post a new topic
    6 Replies Latest reply on May 23, 2014 2:44 PM by bennyq

    Credit Card Protection Plans Don't Protect You

    deltacredit2013 Adventurer

      (Excerpt from our newsletter found at


      Many credit card companies boast their consumer protection plans.  They inform you that if you make a purchase or are a victim of fraud, they will “get you your money back”.  Well, that is partly true.  We recently had a customer that disputed a transaction with their credit card.  They purchased a flight to Mexico.  Due to the fact that their trip was riddled with issues stemming from poor customer service on the part of the airline, they wanted their money back.  The credit company agreed that the grievous errors made on the part of the airlines in fact constituted a transaction whereby the customer did not get what they anticipated in their purchase and reversed the transaction.


      The airline did not come to the same conclusion.  Now out the money for the used ticket, they sent the bill to a debt collector who is now trying to collect and is reporting their efforts to the credit bureaus.  The credit card’s response was that they are now out of the picture and that the only recourse is for the customer to un-reverse the transaction. 


      The lesson is– the credit card protection plan wasn’t protecting the customer.  They were protecting themselves.  They had a case whereby a customer verbally stated they did not want to pay for the transaction.  For the credit card company, it’s better to have the customer owe the airline than to owe them for the unwanted transaction. 


      Did you get the “aha” moment?