Consumer credit insurance commonly referred to as CCI is sold with:
Car loans; and
It provides cover for consumers if they are unable to meet their minimum monthly loan repayments due to unemployment, sickness or injury (subject to policy terms) or to pay an outstanding loan balance upon death.¹
CCI is optional and is usually sold at the time of applying for the credit card or loan.
Many of these policies were sold to consumers who were ineligible to claim or unlikely to benefit or need cover.
Pressure selling and unfair sales practices were often used.
Some names you might recognise on your statements include the following:
“Credit card cover”;
“Consumer credit”; and
Australians have paid over $500 million in CCI premiums.²
According to ASIC over $100 million is expected to be paid back to 300,000 + customers who were mis-sold CCI.³
While every matter is different, customers can potentially receive hundreds or thousands of dollars plus interest in refunds.