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You could be owed thousands of dollars! Here's how one woman claimed her refund
Like many Aussies, Patricia from Sydney was blissfully unaware that she was owed a sizable chunk of money – $24,000, to be exact.
It wasn't until she saw a news story about it that she realised there was the potential for her to get a refund on what's called 'junk insurance'.
For those who may not be familiar, 'junk insurance' is a term used to indicate add-on insurance plans that are virtually useless to the customer to whom they were sold. This could take the form of a policy that doesn't apply to the customer's situation, is difficult to file a claim on, or just overcharges for nonexistent services.
Yes, you read correctly: some financial institutions have been selling complete garbage to their customers and pocketing the cash! Thankfully, this practice has been put to an end (for now), but there are still billions of dollars in refunds waiting to be claimed.
One woman unexpectedly received $24,000 in reimbursement from her 'junk insurance'. Credit: Toni Faint/Getty Images. (Stock photo)
Patricia quickly decided to investigate and see if she could get any money back, so she reached out to Claimo – a service that helps consumers find and process refunds by launching an investigation on their behalf.
'I saw on the news a few months back that people were eligible for these refunds,' she said in an interview with a news source. 'So, I made an inquiry, and I found out I had been paying insurance that I shouldn't have been paying.'
Just five short weeks later, Patricia received amazing news: her inquiry had come back positive, and she would be receiving a $24,000 payout!
'I didn't even realise I was eligible [for the refund], and it's quite a bit of money I got back, so it's very exciting,' Patricia said after being told about the windfall.
She plans to save the money for a down payment on a house loan.
The first thing to do if you suspect you were offered junk insurance is to see if your bank, super fund, or other financial institution has contacted you about any remediation programmes they are currently participating in.
Get in touch with the bank or other financial institution in question if you still have questions about any fees you may have been charged and want to confirm whether or not you were wrongly charged.
If you think you might be eligible for a refund as well, 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.
We hope this article has helped shed some light on a very confusing (and frustrating) issue. If you're still feeling lost, the team members at SDC are always happy to help out – just reach out to us via our website or in the comments section below, and we'll do our best to point you in the right direction!