Chase Payment Protector...enroll before layoff?

[Free4Life11]

I am getting laid off next year and will receive a 60-day notice. I am thinking about signing up for the Chase Payment Protector when I get the notice.

https://www.chasepaymentprotector.com/learnmore.cfm

For involuntary unemployment they say you can defer payments for 2 years AND incur no interest or payment protector plan fees.

My balance is high ($7500) at about 18% interest. The fee for the plan would be high the first month or two ($.89 per 100) but once the payments are frozen my balance would not increase and I assume I can still make payments during the deferral period. The no interest would be great as I could pay down my balance a little faster.

Does this sound like a good idea?

 

[espana94]

I am getting laid off next year and will receive a 60-day notice. I am thinking about signing up for the Chase Payment Protector when I get the notice.

https://www.chasepaymentprotector.com/learnmore.cfm

For involuntary unemployment they say you can defer payments for 2 years AND incur no interest or payment protector plan fees.

My balance is high ($7500) at about 18% interest. The fee for the plan would be high the first month or two ($.89 per 100) but once the payments are frozen my balance would not increase and I assume I can still make payments during the deferral period. The no interest would be great as I could pay down my balance a little faster.

Does this sound like a good idea?

Check the fine print and make sure there isn't a waiting period before benefits can be claimed before you sign up for this. You would hate to sign up, make a claim and then find you that you had to have the proectection in place for 90 days (or more) before you can make a claim.

 

[Free4Life11]

I found a copy of the fine print and there is a 30 day waiting period. Here is a copy:

http://www.knowzy.com/Personal_Fina...Chase_Payment_Protection-Terms_of_Service.doc

It *seems* like it would be beneficial, I only wonder what kind of documentation they would require. Obviously something from the unemployment office, but I just wonder if they would require anything else.

 

[msmayor]

I am getting laid off next year and will receive a 60-day notice. I am thinking about signing up for the Chase Payment Protector when I get the notice.

https://www.chasepaymentprotector.com/learnmore.cfm

For involuntary unemployment they say you can defer payments for 2 years AND incur no interest or payment protector plan fees.

My balance is high ($7500) at about 18% interest. The fee for the plan would be high the first month or two ($.89 per 100) but once the payments are frozen my balance would not increase and I assume I can still make payments during the deferral period. The no interest would be great as I could pay down my balance a little faster.

Does this sound like a good idea?

There may be no interest charged, but in my mind in order to continue to be "protected" you'll have to continue to pay the premium. I seriously doubt they will simply let you sign up, pay a couple months of $0.89 per $100 and then suspend the premium once you start receiving the benefit of no payments and no interest.

With a $7500 balance, that's about $67/month in premium. My guess is they will continue to ADD that premium to your balance as long as you are enrolled; you just won't be charged any interest or have to make a payment.

I'd be sure to understand exactly what the cost of this is before deciding to enroll.

 

[Knowzy]

Hi Free,

That's great that Disney is giving you 60 days notice. I've always heard they a great company to work for and that's one more reason.

With 60 days, you can sign up the day you get the notice and still qualify for benefits. Don't wait too long, though- you cannot file a claim in the first 30 days that you're enrolled in payment protection.

Keep in mind that this division of Chase behaves like an insurance company without being encumbered by pesky insurance regulations and oversight. As Espana warned- make extra-double-sure they have no reason to deny your claim.




Here are some reasons they could tell you, "Sorry, but thanks for playing!" See more reasons in my article. [knowzy .com/payment-protection-plans.htm#ClaimDenyReasons]

• Temporary or Seasonal Employment? If Disney never intended your job to be permanent, Chase can deny your claim. They may call your former boss to verify your employment was on a permanent basis.
• Full Time Only Chase defines full time as 30 hours or more a week over the previous 90 days.
• Current, Not Over Credit Limit If you get behind on your payments or are over your credit limit when you apply for benefits, you could be out of luck.

Those are the big ones in your case. But do read the fine print to see anything else jumps out at you.

I assume I can still make payments during the deferral period.

That's correct. You can even continue charging on your Chase card, though Payment Protector won't cover the extra charges.

Obviously something from the unemployment office, but I just wonder if they would require anything else.

They will likely require a bit more, last pay stub, etc. And, as I said before, they have the right to contact Disney and your former boss to make sure your story matches up.

There may be no interest charged, but in my mind in order to continue to be "protected" you'll have to continue to pay the premium.

Not true. You do not have to pay payment protection fees while receiving benefits.

I seriously doubt they will simply let you sign up, pay a couple months of $0.89 per $100 and then suspend the premium once you start receiving the benefit of no payments and no interest.

They certainly won't be happy about it. And if you feel your claim was unfairly denied, you have little recourse compared to an actual insurance policy. [knowzy .com/payment-protection-plans.htm#PaymentProtectionNotInsurance]

You can't complain to your state insurance comissioner. Your Chase cardmember agreement commits you to binding arbitration.

It's a bit of a gamble for sure. You can turn the odds in your favor by doing your homework (and you're off to a great start).

You can limit your potential losses by signing up as late as possible. Most people don't have the luxury of a 60 days notice, so you definitely have the advantage.

Please let me know what you decide to do. If you do sign up, I'd love to follow your progress as kind of a case study in my ongoing coverage of payment protection plans.

Good luck!

Jeff Lawlor
Payment Protection Plans: Are They Ever Worth the Money? (@ Knowzy)

 

[SandrA9810]

Well if the job was a temp job, you wouldn't be eligible for unemployment either.
Another thing, can you be denied if you recieve a severance package.

When Disney did major lay-offs mid year, it was to CM's that had 10+ years with the company. Their package was like 90 days of benefits past release date, and 1 week of pay for every year with the company.

I've known of several people who got laid off that didn't know a thing till they said "please visit MO-7".

Are you under a union contract that provides a 90 day notice of lay offs or something??

Generally they'll give you the first 30 days free for enrollment. That'll save you an extra 70 bucks right there.

 

[DisLizzie]

Unfortunately, I recently had to file bankrupcy due to an extended layoff. Chase was one of my creditors and if you are not able to make suitable arrangements they don't play for very long. They had a claim filed against me within 4 months of going delinquent on a balance much lower than yours. I also know of another family who recently had their checking account attached by Chase.

So my personal suggestion is, if you can carry the burden of the insurance for a few months before you get laid off, it is more than worth the cost in the long run. Just be sure to read the fine print and follow all the rules.

 

[funkychunkymonkey]

Unfortunately, I recently had to file bankrupcy due to an extended layoff. Chase was one of my creditors and if you are not able to make suitable arrangements they don't play for very long. They had a claim filed against me within 4 months of going delinquent on a balance much lower than yours.

My balance was higher and it took them 6 months before they came after me.

 

[Free4Life11]

I've been working for this corporation for 3 years, but have been in this state (Florida) since October 2008.

They actually announced they are shutting down this office in May. The 60-day notice is not because they are kind and generous but because they are required to by a federal law. We will get a small severance based on years of service, but it my undertanding that it will NOT effect unemployment eligibility in Florida.

Jeff Lawlor
Payment Protection Plans: Are They Ever Worth the Money? (@ Knowzy)

Thanks so much for your article! It was extremely helpful. I will certainly let you know what happens and comment on the article.

Thanks for all the information. I don't think I am going to get my notice until Feburary, but I am trying to get all my ducks in a row.

 

[SandrA9810]

There is a federal law that requires large companies to provide advance notices like that, but there's tactics around that as well.
Disney laid off 1,500 managers in about 2 days with no prior notice. With 60,000 cast members all working at the World, you would've thought they'd have to give notification prior, but because the managers were from all different lines of business and such, they were able to get around it. There was even an article in the paper about how Disney was able to bypass the law. So just because your company has 500 workers or something that they'll give you the 60 day notice, don't count on it. More power to you if they do. But I would start saving up now to meet the minimum payments for 2-3 months after your layoff until the credit protection goes into affect.

 

[Knowzy]

Another thing, can you be denied if you recieve a severance package?

No. The terms and conditions don't mention severance packages, vacation time payouts or anything like that. Just an involuntary, complete loss of employment.

Unfortunately, I recently had to file bankrupcy due to an extended layoff. Chase was one of my creditors and if you are not able to make suitable arrangements they don't play for very long.

I'm sorry to hear that. It is worth mentioning that filing for bankruptcy automatically cancels Payment Protector.

Thanks so much for your article! It was extremely helpful. I will certainly let you know what happens and comment on the article.

You're welcome. I'm glad I could help. I hope the axe doesn't fall too soon but I look forward to hearing from you when it does.

Jeff