More victims of 'junk insurance' are coming forward and getting their well-deserved refunds
- Replies 8
Did you know that millions of Australians have been unknowingly paying for 'junk' insurance policies since the 1980s? That's right, one in ten people in Australia is owed money due to these schemes, which were deemed unnecessary or completely worthless.
But the good news is that financial institutions have been ordered to refund people duped into purchasing these policies, with $10 billion set aside for this purpose following a banking royal commission in 2019.
Unfortunately, customers are not informed about the potential refunds they are entitled to, which means they may not even realise they are owed money.
Luckily, some companies like Claimo are working to make the process of reclaiming funds from these junk insurance schemes much easier.
According to Nathan Mortlock, the CEO of Claimo, more than 6 million Australians may have been affected by these schemes. The company provides assistance to people who are seeking to collect funds from junk insurance policies, and they have seen shocking amounts of money being returned to their clients.
Bogden Hulewicz's story is just one example of how these 'junk' insurance schemes have affected Australians over the years.
Despite paying $8,000 in fees for his 'protection insurance' policy since 1992, Hulewicz had yet to learn that it was completely worthless. When he learned about the refunds being offered, he decided to take action.
'I didn't realise it was completely worthless,' Hulewicz told a news source. 'If you were sold a home loan in 1991, for example, and were told you had to have mortgage protection, there's a good chance you're owed a refund.'
Thanks to the work of companies like Claimo, Hulewicz was able to get back a whopping $15,000 in refunded fees - a reminder that it's important to stay informed about the financial products and services we use and to take action if we suspect we've been misled or taken advantage of.
Sharon Hawke's experience with getting her money back from junk insurance policies shows just how easy it can be with the right help. The Gold Coast woman has already received $2,500 in refunded fees, with another $4,000 on the way.
'I just named all the previous car loans, creditors I had, sent it to them and they've done the work,' Hawke explained in an interview. Companies like Claimo make the process of reclaiming funds from these junk insurance policies as simple and straightforward as possible, allowing customers like Hawke to get the money they're owed without any hassle.
The scale of the problem caused by these 'junk' insurance schemes is staggering.
According to Australian Securities and Investments Commission data released in September, an estimated $1.6 billion is yet to be paid to about 2.7 million consumers for remediation for both junk insurance and fees for non-compliant advice.
That's a huge sum of money that could make a real difference in people's lives, and it's important for customers to take action if they suspect they're owed a refund.
The good news is that there are avenues for seeking that refund. Customers can complain to the Australian Financial Complaints Authority to start the refund process after speaking with their lenders.
If they're unhappy with their lender's response after 30 days, they can visit the AFCA website to lodge a complaint.
It's important to remember that customers have rights when it comes to financial products and services. If you've been sold a 'protection' policy that turned out to be worthless, or if you've been charged fees for non-compliant advice, you may be entitled to a refund.
By speaking up and seeking assistance from organisations like Claimo and the AFCA, you can take steps to reclaim your money and hold financial institutions accountable.
So, if you think you might be owed some money, what can you do about it?
If you still have questions about any fees you may have been charged, or if you want to confirm whether or not you were wrongly charged, it's a good idea to get in touch with the bank or other financial institution in question. They should be able to provide you with more information about the specific policies or fees in question.
If you think you might be eligible for a refund, the Australian Securities and Investments Commission (ASIC) has put together some guidance on what to do next. More details about the refund (including how to claim it) can be found on the ASIC website.
Do you know anyone who's had a good experience reclaiming money back from the banks? What tips do you have? Share your thoughts and advice in the comments section below.
But the good news is that financial institutions have been ordered to refund people duped into purchasing these policies, with $10 billion set aside for this purpose following a banking royal commission in 2019.
Unfortunately, customers are not informed about the potential refunds they are entitled to, which means they may not even realise they are owed money.
Luckily, some companies like Claimo are working to make the process of reclaiming funds from these junk insurance schemes much easier.
According to Nathan Mortlock, the CEO of Claimo, more than 6 million Australians may have been affected by these schemes. The company provides assistance to people who are seeking to collect funds from junk insurance policies, and they have seen shocking amounts of money being returned to their clients.
Many Aussies are unknowingly owed thousands of dollars. Credit: JESHOOTS.COM
Bogden Hulewicz's story is just one example of how these 'junk' insurance schemes have affected Australians over the years.
Despite paying $8,000 in fees for his 'protection insurance' policy since 1992, Hulewicz had yet to learn that it was completely worthless. When he learned about the refunds being offered, he decided to take action.
'I didn't realise it was completely worthless,' Hulewicz told a news source. 'If you were sold a home loan in 1991, for example, and were told you had to have mortgage protection, there's a good chance you're owed a refund.'
Thanks to the work of companies like Claimo, Hulewicz was able to get back a whopping $15,000 in refunded fees - a reminder that it's important to stay informed about the financial products and services we use and to take action if we suspect we've been misled or taken advantage of.
Many financial institutions had duped their customers into buying what's come to be known as 'junk insurance'. Credit: Unsplash/Dimitri Karastelev.
Sharon Hawke's experience with getting her money back from junk insurance policies shows just how easy it can be with the right help. The Gold Coast woman has already received $2,500 in refunded fees, with another $4,000 on the way.
'I just named all the previous car loans, creditors I had, sent it to them and they've done the work,' Hawke explained in an interview. Companies like Claimo make the process of reclaiming funds from these junk insurance policies as simple and straightforward as possible, allowing customers like Hawke to get the money they're owed without any hassle.
The scale of the problem caused by these 'junk' insurance schemes is staggering.
According to Australian Securities and Investments Commission data released in September, an estimated $1.6 billion is yet to be paid to about 2.7 million consumers for remediation for both junk insurance and fees for non-compliant advice.
That's a huge sum of money that could make a real difference in people's lives, and it's important for customers to take action if they suspect they're owed a refund.
Claimo made it their mission to help Australians to reclaim the funds they're owed. Credit: Unsplash/Tyler Franta.
The good news is that there are avenues for seeking that refund. Customers can complain to the Australian Financial Complaints Authority to start the refund process after speaking with their lenders.
If they're unhappy with their lender's response after 30 days, they can visit the AFCA website to lodge a complaint.
It's important to remember that customers have rights when it comes to financial products and services. If you've been sold a 'protection' policy that turned out to be worthless, or if you've been charged fees for non-compliant advice, you may be entitled to a refund.
By speaking up and seeking assistance from organisations like Claimo and the AFCA, you can take steps to reclaim your money and hold financial institutions accountable.
So, if you think you might be owed some money, what can you do about it?
If you still have questions about any fees you may have been charged, or if you want to confirm whether or not you were wrongly charged, it's a good idea to get in touch with the bank or other financial institution in question. They should be able to provide you with more information about the specific policies or fees in question.
If you think you might be eligible for a refund, the Australian Securities and Investments Commission (ASIC) has put together some guidance on what to do next. More details about the refund (including how to claim it) can be found on the ASIC website.
Do you know anyone who's had a good experience reclaiming money back from the banks? What tips do you have? Share your thoughts and advice in the comments section below.
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