If you’re a savvy user of credit cards, you know that many cards offer a lot of free protections. One of the biggest secrets in credit card details is that many offer up to a year of additional warranty coverage on the purchase of most technology products (and just about everything else that you buy). Considering the cost of extended warranties, that’s a pretty good perk… if you’re good at keeping copies of your records.
If you didn’t know about this, don’t feel too bad… we’ve only been dropping hints about it for a few years now. But, really, the credit card companies kept these features quiet because they wanted to gain marginal savvy shoppers, while keeping everyone else unaware of the benefits. They win when you don’t file a claim, but they win even more when you sign up for their card… typically, even if you file a claim or two each year.
Fast forward to the credit crunch of the past three years. Add in the new Credit Card Protections Act, and credit card companies are making good on their promise that it would mean unfavorable terms for consumers. Specifically, many credit card companies are gutting their free warranties, and many other protections, and going down to the federal minimum.