Credit Cards: Consumer Costs for Debt Protection Products Can Be Substantial Relative to Benefits but Are Not a Focus of Regulatory Oversight: GAO Report to Congressional Committees, March 2011

Credit card issuers often offer debt protection products or, less frequently, credit insurance to their customers as protection against unexpected financial hardship that could make meeting monthly payments difficult. These products may cancel, pay off, or suspend part or all of a consumer’s credit card debt under specific circumstances. According to industry estimates, in 2009 consumers paid at least $2.4 billion in fees for debt protection products and $186 million in premiums for credit insurance on at least 25 million cards.