Consumer credit insurance (CCI) is purchased in case the person can’t make loan repayments because of unemployment, illness, disability, injury, or death. It is supposed to be sold as a product that will serve as a preventive in the cases mentioned above. In addition, the client has to satisfy particular requirements to buy CCI. Unfortunately, many clients end up with a product they didn’t need, didn’t want, or are not eligible for. That way, billions of dollars of their hard-earned money stay unclaimed in insurance companies’ and banks’ coffers.In this article, we present ways to reclaim consumer credit insurance easily.
First Thing You Should Be Aware Of
Consumer credit insurance is considered “junk insurance”. If you purchase CCI, sales associates get a commission. Therefore, they probably won’t pick the ways to sell you this sort of product. However, you should know that you don’t have to buy it. Unfortunately, in many cases, a considerable number of customers didn’t think they had already paid for CCI, let alone that they could refund the money because it wasn’t clear what they were signing up for. Salespeople often add CCI to the paperwork without the client’s agreement and knowledge. That happens because salespeople mask the product within the insurance package, avoiding presenting it as an individual point that isn’t obligatory to buy.
How Can You Know Whether CCI Was Added To Your Policy?
The official name of “junk insurance” is “add-on insurance”, and it is also known as “mis-sold insurance”. That term implies a variety of insurance policies that insurance companies and banks often unknowingly add to the loans or credits of their clients. According to Australian Law, you should be provided with the product disclosure document you must read and understand before buying the insurance. That should help you decide whether you need consumer credit insurance. Unfortunately, most clients never saw that document to avoid unnecessary payments. The lucky ones with a certificate of insurance had a document containing a detailed listing of essential information such as the period of insurance, their policy number, and the cost of premiums. Only if you get that sort of document can you be sure that you have avoided hidden items in your policy.
Do Not Be A Victim
If you are a victim of “junk insurance” such as consumer credit insurance, you should know there is a way to reclaim CC money. Namely, Banking Royal Commission 2018 revealed an Australian national scandal and noticed the need for insurance companies and banks to refund their clients’ billions of dollars for product fees, including premiums that were hiddenly sold for many years. Moreover, some institutions have already put aside that money, waiting for clients to claim it. Therefore, don’t be a victim and take advantage of that possibility.
How Can You Claim Back CCI?
Over the past four years, many excellent group actions took place. Namely, in that way, consciousness about CCI and other similar items that weren’t correctly sold for numerous years is raised. However, many customers had not been entirely refunded. Moreover, clients are banned from complaining as individuals. Luckily, in Australia, some experts can make the complaint directly for you, by doing the complete claims process. You just have to provide them with the proper information, including specific contracts. Then, they will analyse all details and contact you to finish your claim and finally submit it. In that way, you will get entirely paid out.
Keeping all mentioned above in mind, we recommend you be careful when purchasing insurance policies. There is a danger of hidden items such as consumer credit insurance and similar unwanted products. On the other hand, if you experienced that inconvenience, you should know that you can opt for experts who will solve the possible reclaim issues for you.