credit card and insurance co. question

What is the name of your state? wisconsin
I had a cc with crapital one,which I cancelled long ago when I went on disability(I am currently on ssdi)I only owed about $400.00 when I went on temp. disability in feb.02.Ins. that I purchased through them paid the minimum from march 02 until march 03.I went on permanent disability in august of 02.At that time ins.was suppose to make a $200.00 lump sum payment,that should have taken it down to around maybe $200.00 owed.Well,ins.co. did not pay until june of 2003.So for that 10months I was being charged interest and overlimit fees on the full amount.If they would have paid on time,I would not have these extra fees.Crap.One keeps calling and saying it is going to collections and they could garnish my wages.Well I know they cannot because I only have ssdi income and no assets.I sent letters a couple of times to Crapital One and Ins.co(crr) but I have not had a written response from either one.I would be willing to make monthly payments on this,if they would wave these fees that I was being charged,but they just say I owe $900.00 and have to pay.What should my next step be?

A: 1. Check your payment protection terms. If they are the same as mine they should have continued to make payment the monthly payment.

2. Was there a written agreement with you that you would accept the 200.00 payment to settle with them?

3.Did you attempt to pay the remaining balance after they notified you they would pay the 200.00 lump sum?

It is possable that they may have breached their contract with you, but it depends upon the terms of the agreement, and any concessions made by you.

Insurance policy states that they are suppose to pay the lump sum as soon as I go on permanent disability.I am not disputing that I owe,I am just complaining about the extra charges from august until june.If they had paid on time in august,I would not have the extra charges.By them not paying until 10months after when they were suppose to,I had charges on the full amount instead of the lessor amount.

[bigun]

Complain to your state insurance commissioner and, the state AG. She seems pretty consumer friendly. She's already sued one cc company for collection pratices. See if these 2 offices can help.