Couple discovers junk insurance scam on TV and receives $110,000 payout!
- Replies 5
In a remarkable turn of events that sounds almost too good to be true, a mother from Central New South Wales has had a windfall that has changed her family's financial future.
Teenah and her husband Troy received a staggering refund of more than $111,000 after discovering they had been victims of a 'junk insurance' scheme tied to their mortgage.
This story, which unfolded over three years, is a beacon of hope for many Australians who may unknowingly be in a similar situation.
The journey to financial relief began when Teenah watched morning television, and a segment on junk insurance caught her attention.
Junk insurance refers to unnecessary or worthless insurance policies that are often bundled with loans or credit cards without the consumer's full understanding or consent.
Teenah had a hunch that something was amiss with her home loan, as years of diligent payments barely made a dent in the principal amount.
The couple attempted to cancel the insurance but found the process daunting.
After Teenah's revelation from the TV segment, they decided to take action.
They contacted Claimo, a consumer advocacy firm that assists individuals in identifying and claiming refunds for mis-sold insurance.
The process took approximately three years from their initial inquiry to the day they received their refund.
But the wait was worth it. 'I was in disbelief because it felt like the little people couldn't win against the bank,' Teenah expressed.
‘We’ve put the money straight on the mortgage, so we’ll own our house in a year or two rather than ten or more.’
‘We already see (the loan balance) drop week by week. We can breathe and look forward to the future.’
Teenah mentioned that the refund was much higher than she had anticipated, and they considered using it to treat themselves to something nice.
‘Of course, it was spent everywhere in my mind, but we did the sensible thing,’ she added.
This case is not an isolated incident. Following a banking royal commission, banks have set aside a colossal $10 billion to refund customers who were sold junk insurance on credit cards or loans.
So far, the big four banks have paid out about $40 million, with Claimo taking a 30 per cent fee from any refund it secures.
Nathan Mortlock, the director of Claimo, highlighted that many consumers needed to be informed that loan insurance was optional.
‘If you took out a loan with a major bank in the early 2000s onwards — personal loans, home loans, credit cards, you name it — the likelihood is that you were duped into purchasing add-on insurance,’
‘Most consumers weren’t told the loan insurance was optional. What happened was that the value of the insurance on the loan was bundled into the total amount of the loan, often at the time of signing, substantially increasing the payable interest, resulting in the loans taking up to a third longer to pay off.’
‘The interest applied to the loan was often applied to the loan insurance, an unnecessary double whammy for consumers.’
Mortlock also emphasised the importance of including compensatory interest in refund calculations, which can significantly increase the total amount.
For those who suspect they may have been sold junk insurance, the onus is on you to take action.
‘These guys will rarely make an offer to refund the money. Advocates like ourselves have had to fight for these refunds, plenty of which have been sizable and, in some cases, life-changing,’ Mortlock explained.
The first step is to review your loan paperwork for terms like 'consumer credit insurance' or 'mortgage loan insurance.'
If you're unsure, it's advisable to contact your financial institution for clarification.
If the insurance was included in your repayments, you might have also been paying interest on that insurance, which is grounds for a refund.
In related news, several Australians have received significant refunds for deceptive 'junk insurance' policies that were unnecessary and used to obtain various types of credit.
Consumers such as Tony Herrmann and Dave Collier discovered they had been paying for redundant insurance policies, resulting in substantial refunds following investigations. You can find more details here.
Have you had any experiences with junk insurance or similar financial issues? Share your stories in the comments below.
Teenah and her husband Troy received a staggering refund of more than $111,000 after discovering they had been victims of a 'junk insurance' scheme tied to their mortgage.
This story, which unfolded over three years, is a beacon of hope for many Australians who may unknowingly be in a similar situation.
The journey to financial relief began when Teenah watched morning television, and a segment on junk insurance caught her attention.
Junk insurance refers to unnecessary or worthless insurance policies that are often bundled with loans or credit cards without the consumer's full understanding or consent.
Over $111,000 was refunded to a mother from Central NSW for unnecessary mortgage insurance. Credit: Shutterstock
Teenah had a hunch that something was amiss with her home loan, as years of diligent payments barely made a dent in the principal amount.
The couple attempted to cancel the insurance but found the process daunting.
After Teenah's revelation from the TV segment, they decided to take action.
They contacted Claimo, a consumer advocacy firm that assists individuals in identifying and claiming refunds for mis-sold insurance.
The process took approximately three years from their initial inquiry to the day they received their refund.
But the wait was worth it. 'I was in disbelief because it felt like the little people couldn't win against the bank,' Teenah expressed.
‘We’ve put the money straight on the mortgage, so we’ll own our house in a year or two rather than ten or more.’
‘We already see (the loan balance) drop week by week. We can breathe and look forward to the future.’
Teenah mentioned that the refund was much higher than she had anticipated, and they considered using it to treat themselves to something nice.
‘Of course, it was spent everywhere in my mind, but we did the sensible thing,’ she added.
This case is not an isolated incident. Following a banking royal commission, banks have set aside a colossal $10 billion to refund customers who were sold junk insurance on credit cards or loans.
So far, the big four banks have paid out about $40 million, with Claimo taking a 30 per cent fee from any refund it secures.
Nathan Mortlock, the director of Claimo, highlighted that many consumers needed to be informed that loan insurance was optional.
‘If you took out a loan with a major bank in the early 2000s onwards — personal loans, home loans, credit cards, you name it — the likelihood is that you were duped into purchasing add-on insurance,’
‘Most consumers weren’t told the loan insurance was optional. What happened was that the value of the insurance on the loan was bundled into the total amount of the loan, often at the time of signing, substantially increasing the payable interest, resulting in the loans taking up to a third longer to pay off.’
‘The interest applied to the loan was often applied to the loan insurance, an unnecessary double whammy for consumers.’
Mortlock also emphasised the importance of including compensatory interest in refund calculations, which can significantly increase the total amount.
For those who suspect they may have been sold junk insurance, the onus is on you to take action.
‘These guys will rarely make an offer to refund the money. Advocates like ourselves have had to fight for these refunds, plenty of which have been sizable and, in some cases, life-changing,’ Mortlock explained.
The first step is to review your loan paperwork for terms like 'consumer credit insurance' or 'mortgage loan insurance.'
If you're unsure, it's advisable to contact your financial institution for clarification.
If the insurance was included in your repayments, you might have also been paying interest on that insurance, which is grounds for a refund.
In related news, several Australians have received significant refunds for deceptive 'junk insurance' policies that were unnecessary and used to obtain various types of credit.
Consumers such as Tony Herrmann and Dave Collier discovered they had been paying for redundant insurance policies, resulting in substantial refunds following investigations. You can find more details here.
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