We all know that feeling – you finally make it to the end of a long and stressful day, only to get home and find an unexpected bill waiting for you in the mailbox.

It seems like every time we turn around, there are new services and fees being tacked on to our already high cost of living. Gym memberships, phone plans, insurance, electricity bills...the list goes on.

And then there are those times when we're charged for services we never even wanted or used in the first place.

Just take a look at the 'junk insurance policies' that millions of Aussies purchased from their financial service providers.

In our previous story, we shared how the Australian Securities and Investments Commission (ASIC) ordered financial institutions to set aside $10 billion in order to prepare for the refunds that many customers are entitled to for 'fees for no service misconduct or non-compliant advice' as well as 'junk insurance' cashback payments.

ASIC previously ordered financial institutions to set aside billions of dollars for refunds. Credit: AAP.​

Now, fresh statistics released in September 2022 by ASIC suggest that an additional $1.6 billion is expected to be paid to an estimated 2.7 million consumers for remediation for both junk insurance and non-compliant advice.

ASIC Deputy Chair Karen Chester explained that companies should be proactive in rectifying payments for customers whose junk policies were unfairly charged.

'Our guidance puts the onus on industry to get on with fair and timely remediations – returning the money they owe to wronged consumers,' she said in a statement.

Independent website Claimo is an agency that assists consumers in finding and filing refunds for junk insurance and other unfair charges.

Nathan Mortlock, CEO of Claimo, an agency that assists consumers in finding and filing refunds for unfair charges claimed that many people were advised to buy a junk insurance policy.

An estimated 2.7 million consumers are projected to get refunds totalling $1.6 billion as compensation for both junk insurance and non-compliant advice. Credit: Getty Images.​

'A lot of the time they were told they had to have that insurance to get that home loan back in the ‘90s and also the ‘00s, and we know that’s actually not the case,' he said.

Many of Claimo's clients were unaware of the charges beforehand, despite the fact that some clients have come forward knowing full well they were wrongfully charged.

In addition to the ASIC remediation programs that are currently funded, a representative for Claimo stated that they anticipated 'millions more Aussies could be owed billions more in junk insurance refunds.'

According to the spokesperson, consumers are encouraged to keep an eye out for any letters from their banks, superannuation funds, or other financial institutions that may request additional information on ongoing remediation programs.

Additionally, those who are unsure of any fees they may have acquired should reach out to the establishment that charged them to obtain clarification if they have been overcharged.

As a call to action to those who were previously with the insurer Freedom Insurance, customers are encouraged to come forward to see if they are eligible for a refund.

The instructions about the refund can be found on the ASIC website here.

When it comes to insurance, it's important to be an informed consumer. There are a lot of different types of insurance policies out there, and it can be tricky to know which one is right for you. That's why it's important to do your research and make sure you're getting the coverage you need.

There are also a lot of "junk" insurance policies out there. These are policies that may not provide the coverage you need, or that are simply a waste of money. It's important to be aware of these so you don't waste your hard-earned cash on something that won't actually help you.

There you have it, folks! Be sure to check if you’re eligible for a refund. If you’ve been sold a ‘junk’ policy, you should be entitled to compensation.

 

[JehazFNQ]

We all know that feeling – you finally make it to the end of a long and stressful day, only to get home and find an unexpected bill waiting for you in the mailbox.

It seems like every time we turn around, there are new services and fees being tacked on to our already high cost of living. Gym memberships, phone plans, insurance, electricity bills...the list goes on.

And then there are those times when we're charged for services we never even wanted or used in the first place.

Just take a look at the 'junk insurance policies' that millions of Aussies purchased from their financial service providers.

In our previous story, we shared how the Australian Securities and Investments Commission (ASIC) ordered financial institutions to set aside $10 billion in order to prepare for the refunds that many customers are entitled to for 'fees for no service misconduct or non-compliant advice' as well as 'junk insurance' cashback payments.

ASIC previously ordered financial institutions to set aside billions of dollars for refunds. Credit: AAP.​

Now, fresh statistics released in September 2022 by ASIC suggest that an additional $1.6 billion is expected to be paid to an estimated 2.7 million consumers for remediation for both junk insurance and non-compliant advice.

ASIC Deputy Chair Karen Chester explained that companies should be proactive in rectifying payments for customers whose junk policies were unfairly charged.

'Our guidance puts the onus on industry to get on with fair and timely remediations – returning the money they owe to wronged consumers,' she said in a statement.

Independent website Claimo is an agency that assists consumers in finding and filing refunds for junk insurance and other unfair charges.

Nathan Mortlock, CEO of Claimo, an agency that assists consumers in finding and filing refunds for unfair charges claimed that many people were advised to buy a junk insurance policy.

An estimated 2.7 million consumers are projected to get refunds totalling $1.6 billion as compensation for both junk insurance and non-compliant advice. Credit: Getty Images.​

'A lot of the time they were told they had to have that insurance to get that home loan back in the ‘90s and also the ‘00s, and we know that’s actually not the case,' he said.

Many of Claimo's clients were unaware of the charges beforehand, despite the fact that some clients have come forward knowing full well they were wrongfully charged.

In addition to the ASIC remediation programs that are currently funded, a representative for Claimo stated that they anticipated 'millions more Aussies could be owed billions more in junk insurance refunds.'

According to the spokesperson, consumers are encouraged to keep an eye out for any letters from their banks, superannuation funds, or other financial institutions that may request additional information on ongoing remediation programs.

Additionally, those who are unsure of any fees they may have acquired should reach out to the establishment that charged them to obtain clarification if they have been overcharged.

As a call to action to those who were previously with the insurer Freedom Insurance, customers are encouraged to come forward to see if they are eligible for a refund.

The instructions about the refund can be found on the ASIC website here.

When it comes to insurance, it's important to be an informed consumer. There are a lot of different types of insurance policies out there, and it can be tricky to know which one is right for you. That's why it's important to do your research and make sure you're getting the coverage you need.

There are also a lot of "junk" insurance policies out there. These are policies that may not provide the coverage you need, or that are simply a waste of money. It's important to be aware of these so you don't waste your hard-earned cash on something that won't actually help you.

There you have it, folks! Be sure to check if you’re eligible for a refund. If you’ve been sold a ‘junk’ policy, you should be entitled to compensation.

I am not sure whether to count my insurance as a junk one. It was applied automatically by my bank and costs me $28 a month. I am told it is a life insurance of, I think, $100k but I’m not great with the “crap speak” jargon used so how do I know if it is junk or not? I’ve kept it mainly as I was told it would be released immediately on my death and it’s way cheaper than funeral insurance.and what about the other little charges banks like to apply? The “membership fee”, the “annual fees”, the outrageous “honour fee” if I go even a dollar into the red?

 

[Cheezil]

We all know that feeling – you finally make it to the end of a long and stressful day, only to get home and find an unexpected bill waiting for you in the mailbox.

It seems like every time we turn around, there are new services and fees being tacked on to our already high cost of living. Gym memberships, phone plans, insurance, electricity bills...the list goes on.

And then there are those times when we're charged for services we never even wanted or used in the first place.

Just take a look at the 'junk insurance policies' that millions of Aussies purchased from their financial service providers.

In our previous story, we shared how the Australian Securities and Investments Commission (ASIC) ordered financial institutions to set aside $10 billion in order to prepare for the refunds that many customers are entitled to for 'fees for no service misconduct or non-compliant advice' as well as 'junk insurance' cashback payments.

ASIC previously ordered financial institutions to set aside billions of dollars for refunds. Credit: AAP.​

Now, fresh statistics released in September 2022 by ASIC suggest that an additional $1.6 billion is expected to be paid to an estimated 2.7 million consumers for remediation for both junk insurance and non-compliant advice.

ASIC Deputy Chair Karen Chester explained that companies should be proactive in rectifying payments for customers whose junk policies were unfairly charged.

'Our guidance puts the onus on industry to get on with fair and timely remediations – returning the money they owe to wronged consumers,' she said in a statement.

Independent website Claimo is an agency that assists consumers in finding and filing refunds for junk insurance and other unfair charges.

Nathan Mortlock, CEO of Claimo, an agency that assists consumers in finding and filing refunds for unfair charges claimed that many people were advised to buy a junk insurance policy.

An estimated 2.7 million consumers are projected to get refunds totalling $1.6 billion as compensation for both junk insurance and non-compliant advice. Credit: Getty Images.​

'A lot of the time they were told they had to have that insurance to get that home loan back in the ‘90s and also the ‘00s, and we know that’s actually not the case,' he said.

Many of Claimo's clients were unaware of the charges beforehand, despite the fact that some clients have come forward knowing full well they were wrongfully charged.

In addition to the ASIC remediation programs that are currently funded, a representative for Claimo stated that they anticipated 'millions more Aussies could be owed billions more in junk insurance refunds.'

According to the spokesperson, consumers are encouraged to keep an eye out for any letters from their banks, superannuation funds, or other financial institutions that may request additional information on ongoing remediation programs.

Additionally, those who are unsure of any fees they may have acquired should reach out to the establishment that charged them to obtain clarification if they have been overcharged.

As a call to action to those who were previously with the insurer Freedom Insurance, customers are encouraged to come forward to see if they are eligible for a refund.

The instructions about the refund can be found on the ASIC website here.

When it comes to insurance, it's important to be an informed consumer. There are a lot of different types of insurance policies out there, and it can be tricky to know which one is right for you. That's why it's important to do your research and make sure you're getting the coverage you need.

There are also a lot of "junk" insurance policies out there. These are policies that may not provide the coverage you need, or that are simply a waste of money. It's important to be aware of these so you don't waste your hard-earned cash on something that won't actually help you.

There you have it, folks! Be sure to check if you’re eligible for a refund. If you’ve been sold a ‘junk’ policy, you should be entitled to compensation.

So if I purchased a home way back in those dark ages how am I meant to rem ember if I was sold "junk insurance" anyway? And if so, who knows if I'd still have the paperwork & even if I did, how the he'll am I gonna find a week spare time to sift thru it just to find if I did in fact have a junk policy even? Or does Claimo actually do all of this for us as well Need more info than what's in this story or I'm guessing that money owed to customers will never be recouped by said customers & remain in the coffers of greedy rip off banks! Gggrrr

 

[Macarj]

The banks would know the people they have sold these insurances to as a client I shouldn't have to ask for it they should send me a cheque

 

[Geoff8]

This is all well and good if I’m entitled to a refund from my previous bank ( Westpac) whom I haven’t been with now for 5 years. When I applied way back in the 80’s, 90’s etc was I sold junk insurance then against personal loans? Also getting “fined” for not having enough money in my account for repayments etc. do I get reimbursed for that too?

 

[Bill MacL]

I received a letter from a bank that I don't even have an account with, they said it was to do with the sale of a "superannuation fund" from one organisation to another and I would be getting a refund because they couldn't find proof of services provided. I thought it may have been a scam so I rang my financial advisor, they said it's genuine but probably won't amount to anything so just treat it as a bonus if I got anything back. A few weeks later I received a letter from my super fund saying same thing and $xxxxx amount plus interest would be refunded to my super fund, I checked my super fund balance and it was true, then another few weeks later I received a cheque from the bank as well. Neither the Bank or super fund admitted any sort of guilt or wrongdoing but it seems they are finally starting to get their butts kicked for all these fees and charges they dream up that aren't genuine. My refunds where only recent but the cause was many years ago, I had no knowledge of anything about it, I wasn't asked to prove anything. If you have any doubts at all, definitely ask your financial institutions.