ANZ Junk Insurance class action
What is the aNZ junk insurance class action?
In February 2020, law firm Slater and Gordon commenced legal proceedings against ANZ Banking Group, OnePath Life, OnePath General Insurance and QBE Insurance (Australia) in the Federal Court of Australia on behalf of customers who held Consumer Credit Insurance for their ANZ credit card or personal loan.
If you paid for insurance on a current OR former ANZ credit card or personal loan, you could be eligible to participate in the Class Action and get your premiums back.
The insurance products in question were called:
ANZ Credit Card Insurance/CreditCover Plus; and
ANZ Loan Protection.
The class action alleges that ANZ and the other respondents:
Caused customers to make payments as a result of a mistaken belief their policy was compulsory or provided value to them
Engaged in misleading or deceptive conduct in relation to the sale of the policies to customers
Engaged in unconscionable conduct in relation to the sale and issue of the policies to customers by, among other things, selling or issuing policies with no or little value
In respect of ANZ only, provided inappropriate personal advice to some customers who purchased the policies in a bank branch or over the telephone
Class actions in Australia use an ‘opt-out’ model, which means you might automatically be joined up to this class action if, at any time since 1 January 2010, you were issued with an ANZ Credit Card or Personal Loan Protection policy and have paid a premium. (For some aspects of the claim, the start date is a little later - on 28 February 2014.)
If that’s you, you should have received an ‘Opt Out and Commencement Notice’ informing you that you were part of the class action.
The date to opt out of this particular class action has now passed, so whether you’re a part of it or not will now determine what you should do next.
What should I do if i'm a current or former ANZ customer?
If you want a refund on Junk Insurance premiums you might have paid to ANZ, you’ve got three options:
1. Contact the bank yourself and ask them for copies of your old statements,
2. Seek a refund via the class action (more on this below), or
3. Ask a service such as Remediator to try and get you a better refund.
PROS & CONS:
diy vs class actions vs remediation services
The most important thing is that you do something to get your money back - whether you take on the bank yourself, or ask a law firm or remediation service to help.
But here’s what you need to know to decide which way to go about it.
If you decide to do it yourself, you’ll need to comb over your old statements for evidence of insurance premiums being deducted.
You can request these statements by contacting ANZ.
Some of us will feel confident to DIY. But DIY can also be time consuming and difficult, so if you want some more firepower in your corner, consider asking the experts to take up your fight for you.
There are two ways to do that, which we explain in more detail below.
If you do nothing, you might be taking this option by default.
In Australia, the plaintiff in a class action does not require the consent of class members to commence a class action on their behalf, nor do they need to identify individual class members.
This is known as an ‘open’ class action system and is different to the system in other countries with a ‘closed’ system which require class members to actively ‘sign up’.
If you’re part of the class action and you decide to remain, you’ll be bound by the result and you lose your ability to claim direct from the bank or via services such as Remediator.
But ‘opting out’ can sometimes result in a bigger, quicker refund.
The ANZ Class Action is being run on a no win, no fee basis. That means that if successful, the court will probably approve for the law firm to deduct reasonable legal costs from any settlement or judgement obtained.
But legal fees and the fees paid to litigation funders on class actions can sometimes really add up. A recent Parliamentary Enquiry concluded that:
"When they finally get their day in court, it is the genuinely wronged class action members who are getting the raw deal of significantly diminished compensation for their loss, as bigger and bigger cuts are awarded to generously paid lawyers and funders.”
An academic submission to the same enquiry found that over the past 20 years, legal fees plus litigation funding fees on class actions added up to on average approximately 40%.
Opting out usually requires a prescribed form to be completed and lodged within a set period of time. This can vary between class actions and jurisdictions. Before opting out, the class member should check they can prove the elements of their claim and that the claim is still ‘within time’.
In some cases, we’ve found they will allow you to opt out AFTER the closing date. So even if you think it’s too late, Remediator can make enquiries for you.
morrissey law & advisory says:
“That convenience should be weighed against the time that that it usually takes to resolve a class action, which can be slow‐moving, and sometimes not reach settlement or determination for several years.”
“Considerations should include:
The scale of class actions - class members may be unlikely to receive more than ‘cents on the dollar’ for their claim.
Loss of control over a class member’s own claim - particularly if litigation funders are involved and are responsible for instructing the class’ legal representation.”
CLICK HERE to read Morrissey Law & Advisory’s full guide to class actions.
We believe services such as Remediator are the ideal compromise for anyone who wants to maximise their refund without doing all the work themselves.
If you’re already joined to the ANZ Class Action: we can inquire whether it’s possible for you to opt out, even though the deadline has passed.
If you’re not joined to the ANZ Class Action: you’re free to use Remediator to try and maximise your refund.
With services such as Remediator, you know what percentage of the refund you’re getting back and you can be confident we will try to maximise your refund and minimise the waiting time.
Remediator only charges 30% while doing all the legwork for you, from contacting your bank to combing through your old statements to chasing up your refund and fighting your corner if the going gets tough.
But the proof is in the pudding: decide for yourself!
Average Remediator refund so far: $2,179
Average time from eligibility check to refund: 38 days
Get your FREE eligibility check here if you haven't already done so
This article does not provide legal or financial advice. Any information in this article is designed to provide information to consumers who want to learn more about class actions and other ways to seek refunds. All information is general in nature.
ClaimFast Pty Ltd trading as Remediator is not liable for any loss caused, whether due to negligence or otherwise arising from use of, or reliance on, the information provided directly or indirectly, by use of this service. Consider whether the service is right for you. If you are unsure how to proceed, you should seek independent legal advice.