Updated: Feb 15, 2022
Three consumers received a pre-Christmas windfall totalling over $50,000 because they’d paid for dodgy “consumer credit insurance” on credit cards that they never should have been charged.
But the key to the size of their refunds was that lenders not only refunded their insurance premiums, but paid interest on sometimes more than a decade of unfair payments.
One of the claimants, Somly from Victoria, got over $25,000 back because the Commonwealth Bank paid around $20,000 in interest on top of refunding her insurance premiums from 2009-2020.
Somly was told the insurance was mandatory and was pressured into the sale and CBA did not have any record of her being provided with the terms and conditions of the policy - all of which were red flags for ‘mis-sold’ consumer credit insurance (CCI) and signs for Remediator that a big refund could be due.
The payment of interest is a major contributor to the biggest Junk Insurance refunds being achieved by Remediator for customers. Interest can turn a $10,000 refund into a $30,000 refund in extreme cases.
Remediator was created after the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. It specialises in refunds and acts as a personalised remediation agent for you, managing the entire refund process from claim to settlement on your behalf.
In the space of a month before Christmas, Remediator achieved three big CCI refunds on credit cards, which remains the most common type of refund achieved by Remediator’s experts:
Somly from Melbourne received $25,469 back
Carmel from the Sunshine Coast received $19,794 back (watch her on 7 News here)
Elena from Perth received $5,814 back
Money-saving expert Joel Gibson spoke to 3AW, 6PR and 4BC this week about the spate of recent big refunds for junk "CCI" insurance on credit cards and why million could be affected by the scandal.
The Royal Commission revealed that banks and insurers used pressure tactics to sell billions of dollars worth of junk insurance and many financial advisers have also charged fees for services they never provided. ASIC estimates there to be $3.55 billion in total refunds owed to over 3.6 million consumers.
“CCI” is Consumer Credit Insurance and was usually sold as an add-on insurance at the time of applying for a 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.
The Banking Royal Commission revealed millions of Australians had paid for junk insurance and ongoing financial advice fees where they received no service. Unfortunately many of those Australians have no idea they’re eligible to receive refunds.
Remediator is here to solve that problem by helping people get refunds for money they should never have been charged.