For years, Australian financial firms have been selling worthless consumer credit insurance (CCI) to Australians alongside their personal loans, car loans, credit cards and other loan products. You may have been sold junk insurance without your knowledge or with aggressive sales tactics despite not understanding policy terms or if the policy was suitable to your needs. Depending on your circumstances at the time, you may also have been ineligible to claim on the insurances you were sold.
While Aussie consumers are being ripped off, insurers have been paying more in commissions to dealers that sell these worthless policies than they pay out in claims to their customers.
If you’ve had a loan or credit card in the past 12 years, you may be entitled to a refund of up to $16,000 per policy.
The Banking Royal Commission
The Banking Royal Commission into Misconduct has placed a spotlight on worthless Consumer Credit Insurance (CCI) and Guaranteed Asset Protection (GAP) policies sold by the car yard or your bank. Banks and insurance companies could face more than $1 billion in refunds because of mis-selling worthless add-on insurance policies such as credit card and loan cover.
How do I know if I have paid junk insurance?
To find these insurances, you will need the paperwork for your loan or credit card. “Junk” insurance may have been charged and can appear in your statements as a monthly cost or on the contract as large fee of around $1900.
Generally, you can claim as far back as 12 years, but it may be more difficult to find the paperwork.
Need help requesting documents?
If you need help requesting your loan contracts, you can log an enquiry on the Claimo website and they will send you a template to fill out and tell you where to send your documents. You should receive your documents in about 10 working days.
Found insurance on your contract?
If you have found CCI or GAP insurance on your contracts, you may be eligible for a refund. Claimo can help you establish your claim and take on the banks and insurers on your behalf. Log an enquiry and Claimo will call you to establish your claim.
Don’t know where to begin?
By logging an enquiry on the Claimo website, they will give you a call and explain the process and answer any questions you may have.
Dealing with banks and insurers can be an intimidating, time-consuming and overwhelming process. Claimo can help get your money back on a no win no fee basis. They do all the hard work, giving you regular updates on your claim.