Have you received mailings or telemarketing calls trying to sell you a "credit card protection" plan? They promise to "insure" you against unauthorized charges and to notify your card issuers if your credit cards are lost or stolen.

That might sound sensible and reasonable at first blush. BUT, there very often are problems with such offers -- problems that make them worthless or even fraudulent:

First, the solicitations often contain serious misrepresentations -- such as falsely claiming that they are calling on behalf of your credit card company, or exaggerating the amount of money you could owe if your cards are lost or stolen. Second, the solicita- tions may try to sell you expensive "protection" you may not need at all (it can cost $50 to $300.) Third, some "credit protection" outfits may sign you up -- and bill your credit card -- even if you refuse their offer. Older Iowans often are victims of such schemes.

Here is a crucial fact: Federal law provides that, if you report a lost card before it is used, you are not liable for ANY amount charged by others, and your MAXIMUM liability is only $50, even if unauthorized charges aren't discovered until your statement arrives. Credit protection plans will rarely tell you that fact!

Consumer Tips on "Credit Card Protection" Plans: