FIRST PROTECTOR: Does it really protect?

Two weeks ago, I called the bank to cancel my First Protector program as I don’t need this and it is a just a waste of money. Imagine the 0.79% p.m. deduction from your current outstanding balance. If you don’t pay your account in full when it’s due, then, expect this miscellaneous deduction.

On one hand, First Gulf Bank credit cardholders need this credit shield considering that the current scenario of Dubai is still miserable. This program showcases various benefits to the cardholders. Among its benefits are as follows:

• Death – The amount of Cardholder’s indebtedness at the date of death up to AED100,000 or credit limit whichever is lower.
• Permanent Total Disability – The amount of Cardholder’s indebtedness from the date of permanent total disablement up to AED 100,000 or credit limit whichever is lower.
• Involuntary Loss of Employment – The amount equaling to 10% of Cardholder’s indebtedness, subject to a maximum amount of AED 4,000 payable for every month of unemployment up to a maximum period of 12 months.
• Robbed or stolen cash – a maximum limit of AED 500.
• Fraudulent transactions on lost or stolen Credit Cards at a maximum limit of AED 7,000
• Loss of Keys and Identification Papers – a maximum limit of AED 300 for keys and a maximum limit of AED 700 for identification papers

On the other hand, this is a bank strategy of collecting money from the cardholders as this time of crisis where banks are greatly affected they need to do their best to survive at the expense of its debtors. Sad to say, all banks have this scheme.

This morning, a certain Ms. Mysa from the First Gulf Bank phoned me to reactivate the First Protector. She had explained me everything, emphasizing the third benefit of the program: Involuntary Loss of Employment. After her ten-minute speech I realized that I have to finish my report for our weekly meeting. Without any clarifications, I told her to reactivate it immediately.

Well, it’s not because I have a very urgent work to finish and I don’t want to waste my time listening the same story. She had the point. This time our works are not stable and we need this kind of program that will protect us from our debts. I am not pessimistic. I did this because of a “what if” theory. What if my company shut down?