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.

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.

Key Takeaways

• Millions of Australians have been duped into buying 'junk insurance' - coverage that is either unnecessary or worthless.
• Financial institutions have been ordered to set aside $10 billion to refund people who purchased junk insurance, but customers are not notified about being owed refunds and have to chase up the funds themselves.
• Claimo is helping Australians with the process of getting back millions in junk insurance refunds.

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.

 

[JayEeGeeP]

I had an insurance policy on my husband's life and at 65 it soared from $247 a month to $1300 and when I queried the cost the answer was he might die. Never trust a Swiss insurance company.

 

[Killa]

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.

View attachment 15122

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.

View attachment 15121

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.

View attachment 15123

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.

Key Takeaways

• Millions of Australians have been duped into buying 'junk insurance' - coverage that is either unnecessary or worthless.
• Financial institutions have been ordered to set aside $10 billion to refund people who purchased junk insurance, but customers are not notified about being owed refunds and have to chase up the funds themselves.
• Claimo is helping Australians with the process of getting back millions in junk insurance refunds.

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.

Out of the blue I was notified of an incorrect calculation of my house insurance no claim policy .At first I thought it was a junk email until about 5 days later $ 750 was deposited into my bank acc.

 

[Bill Mcl]

They demand FULL DISCLOSURE from us. WHY ISN"T IT LEGAL for them to give us FULL DISCLOSURE??

 

[Macarj]

I used to argue until they said ok you don't want the insurance then you don't get the loan I got up to walk out and he called me back and said you don't have to have the insurance this was 35years ago I think on a couple of loans I had over a few years, I never had insurance on loans

 

[Buchan Farmer]

What about mortgages through companies that no longer exist, such as the State Savings Bank of Victoria and many other companies that have been gobbled up in the past?

 

[Ethanrhys]

Is this only for overpaid insurance policies or is it also for overpaid electricity bills as well.?

 

[madelynntmoses]

It's really disheartening to hear that so many Australians have been unknowingly paying for these policies for decades. However, it's great to see that financial institutions are being held accountable and refunds are being issued.
But there are companies that can actually help with the junk. I also wanted to share a resource that I recently discovered - denversjunkremoval.com. It's a helpful company that assists with removing unwanted items from homes and businesses. They offer a wide range of services, including junk removal, recycling, and donation options. I wish we could have more companies like this here.

 

[oldsailor60]

Ok then thank you very much for all the information.
however, i am still in the dark so to speak.

being 80 it takes a little while to decipher the meaning of the additional money i myself may have paid to some dodgey dealer/

how do i get into your team who will then look for anything people have taken [stolen] from me
over the many years

thank you very much
kind regards

Alan Rodgers
5 Skye Lane
ELLENBROOK WA 6069

0416096851
[email protected]

 

[samuelethan]

It's disheartening to hear that so many Australians have been unknowingly paying for these policies for decades. However, it's great to see that financial institutions are being held accountable and refunds are being issued.
But some companies can help with the junk. I also wanted to share a resource that I recently discovered Junk Removal Company. It's a helpful company that assists with removing unwanted items from homes and businesses. They offer a wide range of services, including junk removal, recycling, and donation options. I wish we could have more companies like this here.