Payment Protection Plan Issue

by Aaron

I opened a Capitol One CC in 2004 while on Active Duty. The limit was $500, I added payment protection ($1/$100 balance). In 2005 I was medically retired from the military on grounds of combat related disability. I maintained the card and payments until early 2011 when my wife lost her job. I tried to enact the payment protection insurance but was denied on numerous grounds. The number one reason being that I was no longer gainfully employed (for 5+ yrs) or retired and not eligible for payment protection insurance.

My card soon gained excessive fees. I tried several times to settle for the original balance approx $500. I even offered $750 to settle the debt. Now I am being sued. I replied with a copy of my protection plan which did not exclude retirement or disability as eligibility with my response. I did state that I was responsible for the original limit ($500) but for no more.

I plan to represent myself in court. I have my Payment Protection documentation in hand. Any tips on how I should handle this?

Comments for Payment Protection Plan Issue

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Oct 20, 2011
Payment Protection Plan Issue

Sorry to learn about your problems. When you go to court, be sure to make your situation clear to the judge and be sure he/she understands that you tried to settle your debt. It is important that the judge know that you are not trying to shirk your responsibilities. As for any additional advice, I am not an attorney, so I strongly recommend that you consider scheduling an appointment with a consumer law attorney in your area who helps people resolve debt collection problems to get additional up-front advice about what to do regarding your situation. The attorney's advice could be invaluable, especially given that he or she should be familiar with how the court system in your area works, how the judges tend to rule, etc. Also, the attorney may see something in the protection plan paperwork that you can use to your advantage. An hour of an attorney's time should not cost you a lot.

Good luck!

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