How banks sell you on credit card insurance: Hidden camera investigation (Marketplace)
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How banks sell you on credit card insurance: Hidden camera investigation (Marketplace)

♪ [ theme ] -[ David ] Undercover
at your bank. Insurance is gonna pay for the outstanding
balance on the card. David: Is there a secret
charge on your credit card? How to fight back. I got a refund
of $1,250. David: This is your
[ ♪♪ ] Looking for
an adrenaline rush? [ ♪♪ ] How about plummeting
to the earth from 10,000 feet? [ ♪♪ ] Oh, my God.
Amazing. I have to come
back, like, tomorrow. You’re going to
jump out of a plane? Yes, we are. Are you risk takers? I love adrenaline.
-Like, the rush. Think it’s just the excitement. When you think about the
things you’re about to do here, jump out of a plane, what
are the things you do to minimize those risks? I need a parachute. If I can give me a second
one, that would be great. -[ David ] They wouldn’t
jump out of a plane without a parachute. How about jumping into debt? Let me ask you a question that’s
going to be a crazy segue here. Do you have a credit card? -Yeah.
-Okay. What kind of parachute do
you have for your credit card? What happens if you
can’t pay off your balance? If I couldn’t pay it off? What do you mean? Most people
haven’t thought about it, but banks sure have. Have you ever heard
of something called balance protection insurance?
-No. If you lose your
job, if you get sick, if there’s something where
you can’t pay that, we will cover it for you. That’s balance protection. It sounds good. Life is unexpected.
It’s dangerous. Life is a risk. That piece of mind isn’t
free, though. For a monthly fee, banks say
they will help with your bill if you lose your job,
become disabled, get sick or die. The cost of that
coverage, though, can really add up. You have to
wonder, is it worth it? Hi, “Marketplace”. Hey, “Marketplace”. I live in Toronto. I live in Ottawa, Ontario. I paid them almost $500. $1,250. Just over $6,000. And get this. Some of you tell us certain
banks secretly add the charge to your bills. I didn’t know about
this insurance. I didn’t ask for it. They had put balance protection
insurance onto my account without my permission. I told them multiple
times I don’t want this. I found this whole
situation very scummy. Some of you feel the insurance
has so many exclusions, it often doesn’t pay out. Just ask Haider Ameen. A few years ago, he signed up
for balance protection with TD. They told me that they’re
going to cover me in case I lose my job. Sounded like a good deal. Until he was unemployed. They didn’t accept my claim. The bank says he
didn’t qualify for protection because he quit his job. But Haider disputes that. Besides, he says, the plan
was never properly explained. Like, I felt like they were
taking advantage of me as a student. They didn’t explain things for
me enough to know more about balance protection. [ ♪♪ ] When you sign up, a
percentage of your balance is added to your monthly bill. Now, rates vary. Let’s say you have $2,000
on your credit card and you’re charged 1%. You would be adding 20 bucks
to your bill every month. Over a year, that’s $240. Over ten years, 2,400. And then there’s the fine print. In many cases, it only covers
the minimum monthly payment or a small percentage
of your balance. Banks are supposed to
explain all that up front. But are they? With Haider’s help, we’re
taking hidden cameras inside multiple branches. Haider is going to sign
up for a new credit card at each one. Mmm-hmmm. Haider says he’s heard
this before from his own bank. Another bank,
similar promises. This insider should know. He’s a top seller
at a big bank. This isn’t his voice,
but these are his words. He’s so concerned
about losing his job, we’re hiding his identity. Would you buy it? He says he’s sold hundreds
of policies and seen many claims denied. Back on hidden camera,
let’s test how this employee pitches balance protection. Three banks,
three sales pitches. Nothing about the
many exceptions. And that’s not all. Have there be instances
where employees of the bank have signed people up for this
insurance without them knowing? Why is that happening? Bank employees
have sales targets. And some make commissions. Maybe that’s why
she keeps pushing it. Haider says no. But it seems like the insurance
has already been added. Don’t fall for that
hard sell, John Lawford says. He’s a consumer rights advocate. It has too many bad features. It’s expensive. It doesn’t cover a
lot of situations. And it pays out a very
small amount most of the time. Is it worthwhile
for most people to get? Of course not. No, really.
It’s garbage. So if it’s all that,
why are the banks selling it? It’s pure profit. In the U.S., U.K.,
and Australia, regulators fined some
banks billions of dollars for misleading consumers about
balance protection and similar practices. Some banks have even
stopped selling the insurance. In terms of action, Australia,
England have done more than Canada. Our own watchdog, the
financial consumer agency of Canada, calls this insurance
problematic and high risk to consumers. Clear warnings but no fines. We ask Canada’s big banks to
explain how and why they sell this insurance. They tell us it’s an optional
product meant to help customers when unexpected events happen. They also say that they take
customer concerns seriously and will investigate
if issues arise. Welcome to TD credit cards. TD tells us it pays
out claims most of the time, though not in Haider’s case. He’s fighting for
a $1,500 refund. Well, here’s the thing. I want my money back. I feel like I have
been treated unfairly. No luck for Haider. But remember these guys? They say they were
signed up without their okay? How’s their luck now? Finally after a month
of long phone calls, I got a refund of $1,250. My friend cancelled for me and get some of my money back. After months of fighting, I
was able to get a full refund of just over $6,000.

About Ralph Robinson

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100 thoughts on “How banks sell you on credit card insurance: Hidden camera investigation (Marketplace)

  1. Being from the UK, I'm amazed that payment insurance is still being sold anywhere… The fines for UK banks have been colossal and they've been made to refund anyone who was mis-sold so why would you as a bank risk it?

  2. Yeah, I QUIT my job now my mortgage, CC and other insurances should pay for me to live. Every one of the sales people said LOST your job. That means laid off and doubtful if it includes being fired for sucking at your job.

  3. Credit protection insurance is basically a scam. It doesn't protect the person, only the bank.

    In addition to that, the fee is often at least $1 per month for every $100 owed. That's a great way to turn the 19.9% interest rate into a 31.9% interest rate.

  4. Banks and Canada revenue working together to rip off Canadians with High taxation and bank interest and fees. Nobody gets rich in Canada unless knowing how to hide money from the government and most business owners and offshore money makers.

  5. i know its impossble but try to avoid having a credit card in the first place…but in america its unavoidable

  6. On my first credit card, it was $0.99 per $100… It did NOT cover if you lost your job, and only made the minimum payment if you got sick/injured. The only time it would pay in full is if you died. Moreover, unlike interest (in which you get a 21 day grace period), there is no grace period with the insurance, it's charged on the balance just prior to the statement being issued. I cancelled it after 2 months, it was a hassle to take it off, and they continue to try and sell it to me to this day whenever I have to call in for something else. The only bigger scam I can think of is when Staples tried to sell me a "1 year warranty" for $20 on a backpack that I paid $39 for. I told them I would take my chances and buy a new one if anything happened. I still use the backpack today, 3 years later.

  7. If you are in Quebec, there is "Dépôt volontaire". You can put your debt on it and they are going to fall at 5% interest. Then we have to pay it based on a certain percentage of your salary.

  8. When it comes to job loss and other financial problems, the worst place to get insurance coverage is from the provider of a credit card or bank. That is something that specialized insurance companies should do and not related to credit cards, it should be related to the loss itself such as loss of job or some other financial problem where they would cover those costs for you while you pay them an affordable monthly cost while you do have a job and financially healthy. When you lose your job that is where the specialized insurance company should give you payments and that if they deny your claims, can be sued for damages.

  9. They offered me insurance, but I refused back then. I was broke so why pay more money, especially if I never use it. Luckily, Im very strict about paying off my credit asap.
    Today, I went to my bank cause I was pre-approved for a personal line of credit and heard its good to have. He asked me if I wanted insurance, and I was thinking but he said Id only pay on the balance I use. And its very small amount (ie, if I take out $5000, I would only need to pay 50 cents for insurance). So I said sure cause it sounded very reasonable. But Im open to opinions cause Im still young haha Ill use a bit and pay it off asap so it doesnt get dormant but just good to know

  10. I don't buy insurance on most things. Even for phones or laptops. Im always thinking about the extra fee Im paying…especially since it only lasts for a year or two and the device should last til then. If my phone started getting buggy, id rather invest in a new one then try to repair an old one.
    The only time I ever agreed to insurance was when I booked my first solo trip to Japan. I was already hesitant, as things can change in 3 months and I was worried if they had a big natural disaster were to happen there. Id be willing to give an extra $100 if I could get my $1500 back

  11. Insurance in general is a scam. It's never in your favor. I have a friend who had a tree fall on her car and she thinks the insurance worked out with her until I explained how this was her 1st claim ever and she's been paying insurance for over 20 years. So she has paid out over 40K in insurance and they replaced a car that's worth about 12k. She would have been 28K+ better off had she just put that money in a savings account.

  12. Happened to me with PC master card. I didn't pay much attention for over a year. But they refunded all the money I payed into it. They were really nice about it

  13. Always remember, banks are not your friend. They will charge you through the nose for their money and give you as little as they can for yours. Mortgage insurance, credit card insurance no.

  14. Insurance in general is not worth it. Save your money for a bad day by putting it in a savings account or something you own. Don't redirect your money at a big company that uses your money to pay lawyers that battle with you when you make a claim.


  16. why are people surprised when a bank fucks them over, do you think the banks were able to buy those beautiful downtown towers by doing what's best for you?

  17. What I found out when I lost my job because I had to go on dialysis was that the balance protection would NOT cover me for job loss because of some fine print. They denied my claim. Well at that point I said I do not want that insurance anymore because I paid thousands on it and for what?

  18. This happened to my dad. He went through his statements and saw these insurance charges. RBC was charging him for a few months. After a long phone call, they agreed to refund only 3 months of charges. The insurance is a scam. Stay away

  19. Come ooon TRUST the banks😉😉

    U know, them banks and SOME gov entities that let them do this are working so hard to convince everyone that cryptocurrency and it's underlying blockchain technology is bad for us and they want to protect us from it. But when you take a good look and investigate, you can see who's are scammers here. thank you BBC, what you just showed is the tip of the iceberg. Keep up the good work 💯👍

  20. Consumers would be better off getting a term life insurance policy which would be way cheaper than these so-called insurance companies from Banks cuz you don't know how much of a commission the bank is getting some from selling you this worthless products if you don't meet the weekly hourly requirement youte out of luck bc the banks will try to tell you anyways

  21. Life is so simple!
    Don't spend more than you earn and save as much as possible, then you will NEVER need something such as a credit card insurance.

  22. I'm seeing all these issues being brought to light, and then think to myself "How did the society function with all these stuff going on?"

  23. Juts noticed this on my scotia card.. guess ill be making a call wonder if they will refund me all the money i have paid over the year's.

  24. I've applied for credit cards quite a lot, I've also applied for car loans. Each time I was asked if I wanted insurance and it was very clear what the cost would be. (around 0.10c per $100 I believe). There are no hidden fees.

  25. I had a bank employee at ScotiaBank who was helping me set up a line of credit and a Scene Visa. He was great, he was an older gentleman who didn't like B.S. He sold me the protection on both services but told me to I needed to immediately cancel the one on the credit card before the end of month. He informed me that the LoC protection was definitely worth it, but the CC protection was a terrible fee gouge. The only reason he asked me to accept it was because I was a "young tech savvy person who [he felt] comfortable explaining the problem, knowing [I would] safely cancel it before having to make payments". Why did he want me to take it? …Quotas. He, and his colleagues, were required to sell a minimum number of Credit Card Protection Plans EVERY month (the LoC ones didn't matter, only CC). So he asked me to help him out a little, knowing he wasn't going to cause me harm. Really great guy, super happy I could help him out with his malicious compliance lol

  26. "I know this person, and he passed away and we covered his balance" and if you didnt? well guess what, nothing wouldnt happened, maybe you could've taken some of his assets but thats it, you cant go after the family

  27. i bank with td and that was automatically on my card without me asking. when i called to remove it from my account the teller offered me a one time offer of half the price for it.. i obviously insisted that i did not want/ need it. come on banks.. really?

  28. I refused the the insurance, then noticed they charged it to my card. I called 3 times to refund the charges and cancel the insurance. Every time, they say ok, then keep slipping in the fees.

  29. I quit my job and demand you pay off my credit card….. That is not how it works…. Why would they choose this guy to prove a point? How about we teach people not to carry such high balances, not how to avoid insurance.

  30. I got alot of sales incentives from adding this crap on accounts. I usualy find inactive accounts and add it there, these people arent charged anything (yet), and i get my incentives! The problem occurs when they start using their card and see the fees.

  31. You should ONLY use a credit card if you 100% know for a fact that you have the exact amount in you savings/checking account. Never carry and balance and always opt in for paper statements instead of online statements. If you do not have the cash for something, look the other way or look into buying that specific item second hand. There is NO reason anyone should have credit card debt!! Live on less than you make and save.

  32. Im sorry i dont fully agree that it is not worth it. I did get it when i got my card. There came a time i ended up in the hospital so i phoned and asked if i qualified to put in a claim as it was my choice i was there, they said yes put in a claim and told me since i stayed overnight i qualified for insurance and told me there was no questions asked no hard investigation. I got the papers, asked the doctor to sign off that i was in so many days, submitted n got paid out. No hassles no headaches.

  33. A td employee kept pushing the insurance on me when i told him no like 9 times. Even made me listen to an automated message on the phone explaining the coverage.

  34. Everywhere you go, everywhere you sign there always lookin to nickel and dime US out of money.
    Especially UBER. There the worst. #UBERCon

  35. Labour board needs to review their employee standard acts closely..lots of pubs with line cooks will get shut down.👈

  36. Any one who works in CANADA handling anyone's food should practices food and health safety.ask you self how was your meal prepared.👈

  37. nowadays, VietNamese bank do the similar creditcard insurance for customer. But customer accept this but they do not care too much money they lose

  38. Actually, insurance company corporate with bank to sale financial insurance for bank customer, so bankers have sale pressure to insurance, which leads to scam cases.

  39. They say they will pay the minimum in the States…but YOU have to prove you are disabled to THEIR satisfaction. But when I found out they were trying to get me to pay if I died! I promise you if I'm on a slab somewhere I'm past caring if my credit card bill gets paid!

  40. The balance protection if you try to cash it out because you lose a job you actually don't get the money… there are so many fine print.. I found that out the hard way. I ended up on dialysis .. I mean not like I meant to be unemployed! Just a crooked way to get more money out of you!

  41. Lmao probably the worst segway into a segment I've ever heard. "they like jumping out of planes, how about jumping… INTO DEBT!"

    Lol try again

  42. I live in the US and got my first credit card from Bank of America in 2011. They didn't talk about the insurance at the financial center but I got a call about it soon after my card arrived in the mail. The person on the phone gave me a sales pitch and then asked me if I wanted it. I said "no". He then asked if I would like them to send me the information so I can at least think about it. I said "okay". The following month I was charged the insurance fee and still hadn't gotten the information he said they would send. I called the bank and they took me off the plan as well as reversed the charges. A while after, I get a piece of mail telling me that I am included in some class action lawsuit against BoA for the bank adding customers to the plan even when they explicitly said they didn't want it. I am not sure how that turned out. I never followed it and missed the claim date. At least I didn't loose any money though.

  43. the guy from 2:38 bought balance protection, quit his job, and then went on camera to talk about how the bank took advantage of him and didnt explain it properly after rejecting his claim?

    this guy is a MORON

  44. Same shxt with Apple Care, I worked there 7 years, and they sell the same lie. Just don't buy anything unnecessary stuffs.

  45. Take the money you were going to spend on credit card insurance and save it instead. If "life" happens use the money you saved to pay.

  46. Consumers are shafted in Canada it appears.
    Here we call that PPI
    (Payment Protection Insurance)
    In the UK a lot of Banks and Financial Institutions gave been found to have miss-sold them to consumers, and have been made to refund the payments plus interest.
    Boy have they paid for that scam😂
    Google PPI claims UK.
    Its spawned a claims industry even.

  47. Um, that's why you buy the important insurance (e.g., life, disability) and have some savings. Much better deal than CC insurance.

  48. Ask for a refund. You need to go through a process but they WILL refund you. I needed to wait 7 weeks but I got around 1300 back. Good luck all. Look up example emails that you can send them

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