BestBuy.com

[Msb0120]

Like many people I am having a problem with thw debt protection problem. The more research you do the more worrisome the situation becomes.

On February 2007 I registered a Best Buy Credit Card to purchase a $1000.00 TV with 6 months no interest. I later purchased another TV in 2013 for $600.00 on the same card. I have been making payments every month since 2007 and continue to this day (May 2017).

I never gave it too much thought but finally wondered why the balance never lowered. After 10 years of paying at least the monthly minimum I still owed $1600. I looked into my bill statements when I noticed I was paying something called "debt protection." This debt protection service would amount to $6.00-$17.00 dollars a month. I had apparently been paying this fee for all 10 years and had no idea what this was or why it was on my statements.

Mid April 2017, I called Citibank (which had taken oven HSBC when I signed up for the card) and told them my concern. They put in a request to refund me the money I paid into the debt protection service which amounted to about $1220.00- as what they told me. A couple weeks later I received a letter from Best Buy stating "any previous billed fees are valid and non-refundable." They denied the attempt of a refund but did opt me out of the debt protection service. I have since called Citibank and Best Buy hoping to get clarification in the matter. They have not given a proper answer or direct contact letting me know why the refund was rejected or why this was added onto my statements for 10 years.

After doing more research into Citibank and HSBC, it appears there was some fraudulent activities occurring as they were participating in unfair deceptive credit card practices- latching add-ons to your bill without making the consumer aware. I had no idea what this debt protection was or why I was enrolled in it. I'm still not sure what it even offered or why it was included when signing up for a Best Buy credit card.

What is the best way in getting the money I put into debt protection back? I was scammed but apparently many people were as well. Please resolve this issue.

[Walrus Trusted Contributor]

I remember when this debt protection was offered, but don't recall if it was HSBC. It must have been based on your recollection. It was something you had to opt out of having added on. It was an insurance product they offered that would cover your minimum payments in the event that something happened to you which caused you to not be able to make the payments, including but not limited to becoming unemployed. There was a separate offer that came with large purchases at Best Buy they you actually had to accept at the register and sign the electronic pad accepting it. It may be this latter item that has caused Best Buy to become involved in stating the charges were valid and not refundable.

I understand you feel you were scammed, but again, it was something that would come up on the pad asking you if you wanted it. It is the customer's responsibility to read what they are signing. It is also the responsibility of the consumer to look over their monthly credit card statements to either verify or dispute charges. It is normally assumed that if no dispute us made for 60 days after a charge had appeared on a statement, that the charge is authorized. HSBC collected this debt protection, and it is up to them to reimburse you if you were indeed scammed.

You must have been paying way more than just the monthly minimum payments. If you had only paid the minimum, the way credit cards are set up, it would have taken you over 30 years to get down to the balance you are at. The average time to payoff any large purchase, at the interest rates charged, is 42 years.

[Maria-BBY Retired: Social Media Specialist]

Hello Msb0120,

Welcome to the forum. Realizing that you were signed up for a service you didn't consent to that you've been paying for for 10 years would be very upsetting. I can imagine the shock when you realized this was happening when you viewed your statements.

Walrus provided some great information. As he mentioned, the debt protection was an option you would have had to agree to when you opened the account. As you may be aware, Citibank, N.A. is the issuer of your My Best Buy credit card account. It is however, my goal to assist our valued customers as best as I can; therefore, I will be reaching out to Citibank on your behalf to see if they can assist in anyway. Using the e-mail you registered on the forum, I was able to access your information, and you should hear from them within 3 – 5 business days.

Thank you again for contacting us, and please let me know if you do not hear from them within this timeframe.

Best,

[Msb0120]

Thank you. However my concern is also with the practice of Best Buy representatives. Why was the enrollment of the optional debt protection not more transparent when signing up for a Best Buy card? This is evident by the thousands of cases put forth. A simple google search of "debt protection Best Buy" will result in numerous scams and fraudulent activity over the last 10 years.

[Maria-BBY Retired: Social Media Specialist]

Hello again Msb0120,

I have reached out on your behalf and you should hear back from Citibank. In regards to your question, since a long time has passed since you were signed up for this program it is difficult to determine what happened or was happening at the time. I can confirm that it is the expectation that our associates be completely transparent with our customers when selling any protection plans or signing customers up for Best Buy credit accounts. I assure you I will document your comments for review here at the corporate office. 

Thank you, 

[Msb0120]

Can you tell me how you got this resolved? I'm in the exact same boat. Best Buy and Citibank are sending me in circles.

[Msb0120]

I have received an answer from Citibank informing me of my signature to receive debt protection. I don't doubt this is true. In fact I'm sure I signed. The problem is Best Buy's deceptive add-ons when you sign up for a credit card. This is evident by the thousands of complaints and settlements. It may be in Best Buy's expectations that employees are fully transparent but it is clear they were not for years.

I am outraged beyond belief. I feel cheated and scammed by Best Buy. 10 years of lost money due to a fraud that I am having an incredibly difficult time processing. If anybody can please help with this situation I would truly appreciate it.

[Maria-BBY Retired: Social Media Specialist]

Good morning Msb0120,

I have received the same information sent to you. The investigation was conducted by the executive team at Citibank. I know it wasn't the outcome you expected but that is their final answer, and I'm sorry for the disappointment this has caused. 

Thank you, 

[Msb0120]

Why did HSBC drop from Best Buy during the debt protection debacle in 2012?

[Walrus Trusted Contributor]

HSBC sold its Best Buy card portfolio to Capital One, who then turned around within a year or so selling the portfolio to Citibank. If was the most confusing time as a cardholder, because each time I got a new card I had to contact companies I had set up auto-deductions with, with the new card number and expiry date.