Once in a while, I indulge in a non-tech rant here, just to be interesting – or in hopes of reaching the world at large with some information they can use.
Well, everyone should know that Bank of America’s “Borrower’s Protection Plan” is a complete scam. It charges a HUGE monthly amount to insure your mortgage payments (for only a year!) in case of adverse events like job loss, disability, etc.
When I refinanced a year ago, I signed up for it casually and inadvertently, in light of a “first-year free” offer. When it occurred to me that they would probably refuse to let go of me at the end of the opening year, I canceled my participation in the plan by telephone. Or so I thought.
It’s a year later and I’m scheduled to begin making payments for this rip-off in my mortgage payment starting on July 1st. Bank of America evidently lied to me about letting me cancel a year ago.
Here’s a Washington Post article on the topic with the usual pro-regulatory angle. This is not a matter for regulators. It’s my job and yours to be better consumers.
I just called my mortgage broker and chewed her out good for getting me involved in this scam. I won’t refinance with Bank of America, and will be moving accounts (in addition to my current mortgage, I have two business accounts at BofA) away from Bank of America to more reputable institutions. I’ll be distributing this post far and wide and I hope you will pass it along too.
Bank of America’s “Borrower’s Protection Plan” is a scam.