Canadian Tire 18000 debt after Go Public makes inquiries.
Almost 30 years ago, George Graves signed up for a Mastercard at his local Canadian Tire store. He was also sold insurance on that credit card, designed to help with payments in the event a cardholder loses their job, becomes disabled or gets sick.
“My husband paid for Credit Protector insurance all these years in case something bad should happen,” says his 72-year old wife, Jolante Graves.
“Now it’s happened, and the company doesn’t want to live up to … expectations.”
George Graves, 84, a farrier from Addison, Ont., had a stroke in February that put him in long-term care and quickly led to vascular dementia.
“I thought we’d be OK because of his credit card insurance,” his wife told Go Public.
It’s estimated that millions of Canadians pay for insurance on their credit cards.
But financial experts say the product is pricey, carries numerous conditions to qualify for coverage and often doesn’t pay out. In many cases, the insurance will only cover the minimum monthly payment — not the entire balance.
“Credit card protection is fantastic for the banker, usually horrible for the consumer,” says personal finance expert Kerry Taylor, from Vernon, B.C.