A credit card service designed to help protect consumers from fraudulent charges being made on their account has now come under the scrutiny of the federal agency charged with protecting Americans' finances.
The Consumer Financial Protection Bureau is now looking into credit card lenders' protection plans with the help of the Federal Deposit Insurance Corporation to determine whether these services are actually worth what consumers pay for them, according to a report from American Banker. But lenders say that doing away with these plans, which are designed to act as a form of insurance in the event of fraud, will be damaging for both the card issuers' bottom lines and consumers.
"Our optional protection products have benefits that offer cardmembers tools to monitor and understand their credit, which helps to provide peace of mind," Discover spokeswoman Leslie Sutton told the site.
Avoiding fraudulent credit card purchases is just one way to keep finances healthy. Consumers should also be sure to order copies of their credit reports in order to verify that there are no questionable marks lowering their credit ratings.