CBA Charges A Reminder That Millions More Could Still Be Owed Refunds For Dodgy 'Junk Insurance'
News today that ASIC has filed 30 criminal charges against CBA for the mis-selling of Junk Insurance from 2011-2015 is a reminder of how many Aussies remain out of pocket.
CBA could face fines of up to $51 million and Westpac is also facing civil proceedings for selling dodgy Consumer Credit Insurance on credit cards to credit card customers.
Remediator estimates that as many as 1 in 4 Australian adults could be eligible for a refund on ‘Junk Insurance’ premiums they’ve paid on credit cards and loans over the past decade.
By April 2021, 580,000 Australians had already been repaid over $250 million just for dodgy sales of the main Junk Insurance type - Consumer Credit Insurance (CCI).
But an investigation by consumer expert Joel Gibson and Australia’s newest consumer remediation service, Remediator, has found that around 5.6 million ‘add-on insurance’ policies were sold from 2014-2020.
That potentially leaves millions more who might be eligible for refunds and may not even know they’ve paid for this notoriously poor value product.
Joel Gibson says: “The sheer number of policies sold means the full scope of this scandal remains unknown. There could be millions more still who are owed refunds.”
“Junk Insurance” is an umbrella term used to describe a range of ‘add-on’ insurance policies that banks and insurance companies sometimes add to credit cards and loans.
It’s not cheap - some policies cost over $2000 a year - but it’s poor value: for every dollar credit card customers paid in CCI premiums, they got just 11c back in claims.
Many policies were “mis-sold” using high pressure tactics and some were sold to customers who already had cover elsewhere, or were not eligible to claim.
The clue to whether you’ve paid for Junk Insurance could be in your old credit card or loan statements, which institutions are obliged to provide to you.
Consumers who don’t want to do the legwork themselves can use a service such as Remediator, launched last year, which is now claiming thousands in refunds each week.
Examples include Tracey from Sydney ($4,951 CCI refund), Vena from Brisbane ($6,912 CCI refund), and Michael from South Sydney ($2,691 loan protection insurance refund).
Remediator helps Australians claim refunds from their bank, insurer or financial adviser if they have been mis-sold products/services, or paid for goods/services they did not receive.
Remediator works on a no-win-no-fee basis: if Remediator can’t secure a refund, there’s no fee. If successful, Remediator’s fee is 20% plus GST of the refund amount.