Chase Bank JP Morgan Chase Payment Assurance Switcheroo, Internet

In 2008 I took out a home equity loan with JP Morgan Chase Bank to cover a large special assessment on my condo and pay off my auto loan. At the time, the banker sold us Chase's Payment Assurance insurance, explaining that this plan would cover payments if I should become unable to to pay due to unintentional unemployment, disability, or accidental death. The fee assessed for this plan was based on what I owed, from $25 a month down to $10 this year. 

This week, after working for 18 1/2 years for the same employeer I was laid-off. While facing frightening prospects of trying to sell my condo in the worst of possible markets, I felt some confidence that at least this one bill would be covered.

This is when Chase informed me of different tiers of the Payment Assurance insurance program. This was the very first mention of Gold and Silver members, and the first mentioning that I had been paying only for the Silver coverage. Silver coverage does not cover unintentional unemployment, the only reason I signed up for the coverage.

I believe I was quoted the maximum benefits under the Payment Assurance Gold plan, and offered the for as little as the Sliver Plan price to make the sale. No tiers in the plan where described at the time the loan was made, and had it been explained that the plan that was being offered did not cover unintentional unemployment, I would not have agreed to it.

I did not record the conversation, I believe that I am out of luck.

So at the very least I thought to cancel my useless Silver plan, a plan that has cost me over a thousand dollars over four years. When I called I was informed that the bank would be sending out a cancelation request letter for me to sign and return before accepting my request. I suppose the bank really wants to shake me down for another ten-spot before they let met go.

Final word of advice;
When getting a loan beware. Be it with a bank, an auto-dealership, what have you, be sure to investigate and understand additional costs. Make the time review the proposal on your own and come back another day if you have to. You may be stuck with a loan for a number of years. Make sure you know what you are paying for. In writing.

Be well.