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Expert: - 8/7/2009


Question
Hi,

I am being contacted by a debt collection lawyer regarding a Discover Bank Card I had a couple years ago.  I became disabled and fell behind on the payments.  I remember specifically that I paid for insurance through the credit card company every single month that provided that I did not have to pay the balance if I become unemployed or disabled.  

I paid for the protection plan so I don't think I should be held responsible, but this firm is saying I still have to pay.

Please help.  Thanks in advance.  I live in NYC.

Answer
Beth:

This law firm should not seek a credit balance from you if the credit card company's protection plan should pay off the balance due.  Credit card issuers and other creditors aggressively market products that pay off an account balance if the card holder becomes unemployed, disabled, or dies.

If this product was purchased and a covered event occurs, you should seek payment from the creditor.  If the creditor argues that you did not qualify for the product benefits (because of age, disability, or employment status upon applying for the product, and so forth), then you should not have been paying for the insurance, and Beth you should receive a rebate of all charges and related finance charges.  

Moreover, if your non-qualification was evident from information submitted to the credit card company, then the credit card company should be estopped from refusing to pay benefits.

Hope this answers your question.  If you require any further assistance, please do not hesitate to ask.

Jason Shear, Esq.
Attorney at Law
Admitted in NY & NJ
Phone: (716) 566-8988




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Jason Shear, Esq.

Expertise

I can answer questions for residents of New York and New Jersey regarding creditor harassment claims under the Fair Debt Collection Practices Act (FDCPA); credit reporting errors under the Fair Credit Reporting Act (FCRA); debt collection defense/credit card defense; student loan law; and consumer class actions. I can also answer questions relating to consumer debt defense/collection agency defense, specifically pertaining to consumers being sued or harassed by collection agencies or NY collection attorneys. If you live in New York and have been contacted or sued by firms such as: Mel Harris & Associates, Forster & Garbus, Rubin & Rothman, Choi Law Office, Lacy Katzen, Malen & Associates, Solomon & Solomon, Daniels & Norelli, Cohen & Slamowitz, Pressler & Pressler or others; give us a call at (716) 831-1111.

Experience

I have obtained settlements for consumers in NY and NJ under the FDCPA and FCRA. I have successfully defended consumers who were sued by collection agencies/debt purchasers in the New York State courts. Visit our website at: www.brentandshear.com

Organizations
National Association of Consumer Advocates (NACA) Brent & Shear, P.C. Consumer Attorneys 3957 Main Street, Second Floor Buffalo, New York 14226 (716) 831-1111

Education/Credentials
BA/BS, Accounting & Political Science, Hunter College. Juris Doctor, Univ. at Buffalo Law School. LLM (Criminal Law), University at Buffalo.

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