2.7 million Australians who were duped into purchasing “junk insurance” or who received other shady charges are eligible to receive $1.6 billion.
Financial institutions were required to put aside $10 billion by a royal commission in 2019 to pay back the dubious “junk” insurance policies that were often bundled with credit cards and auto loans.
Insurance that is deemed superfluous or pointless is referred to as junk insurance.
The Australian Securities and Investments Commission, a financial watchdog, reports that $1.6 billion is still pending distribution to up to 2.7 million Australians in its most recent report.
Using the services of an insurance refund provider, which will look into the matter on your behalf, is one approach to determine if you are entitled money.
“You’re likely to have mistakenly paid for junk insurance and are entitled for a refund if you’ve ever had a credit card, taken out a loan, or got financing to purchase a vehicle,” Claimo director Nathan Mortlock said.
“You are extremely likely to owe money if you are above 60 and have had loans throughout your life.”
We now know the ’90s were renowned for adding junk insurance to loans, despite the fact that any loan made before 2018 is worthwhile investing in.
The terms “credit card insurance,” “consumer credit insurance,” or “loan protection” may appear on or next to the “interest changes” line. This is one approach to be sure.
If you come across references to this or anything similar, there’s a good probability you were overcharged for insurance and you may be eligible for a refund.
If someone is unclear if they are entitled to a refund, they should get in touch with their financial institution.
Customers who purchased Freedom Insurance products between 2010 and 2018 are especially encouraged to come forward.
The ASIC website has further information for such clients.