3/28/11 GAO: Debt Protection Costs More Than It Helps

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Consumers pay high fees and see limited benefits from debt-protection offers that suspend credit card payments when borrowers become unemployed or disabled, government auditors say. For every dollar that consumers spend on fees for debt protection, banks pay out only 21 cents in claims, according to a report Friday from the Government Accountability Office. The costs of the product often exceed 10 percent of borrowers' monthly balances, the GAO said.

For more information:
http://www.businessweek.com/ap/financialnews/D9M6HFNG0.htm