Yahoo Finance Thousands in cash refunds available for up to 1 million Aussies: ‘No-brainer’
Many have been paying for junk insurance policies and frontline staff and government workers could get their money back.
A “gobsmacked” former police officer eligible for $20,000 cashback is just one of up to 1 million first responders and government workers across Australia who could be in line for a big cash refund if they’ve been stung by “bogus insurance fees”.
Data compiled by consumer advocate group Claimo has revealed Aussies have paid around $3.4 billion for unnecessary loan insurance add-ons and people could claw back tens of thousands of dollars, which could go a long way in this cost-of-living crisis.
Some of the policies were sold as being vital to securing a loan for a car or a home. Frontline and government workers can also be sold car leases that have tax deduction benefits, however, they end up coming with “hidden insurance costs” that cancel out any savings from those deductions.
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They’re called “junk insurance” because they “provide little or no real coverage for policyholders but are sold to consumers with the promise of providing protection for their assets”.
“When these staff find out they’ve been duped into extra add-ons they didn’t want or need, they’re pretty riled up about it,” Claimo director Nathan Mortlock said.
Following the banking and financial services royal commission, companies who sold these types of insurance were told to contact their customers to ensure they received a refund. Claimo is stepping forward to help expedite that process.
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“We even see examples of police officers getting told that they had to have this insurance on their home loans,” Mortlock said.
Former police officer Dave Collier was convinced to buy multiple junk insurance policies related to his home loan. He was sold consumer credit insurance each time he refinanced his property, before realising he was already receiving income protection through work.
Collier couldn’t believe how much he was entitled to when he applied for his money back.
“When I found out I was due almost $20,000 back, I was gobsmacked,” he explained.
“I guess the money has just given me a financial buffer, especially at a time when the cost of living is so high and everyone’s rubbing pennies together.”
Tony Herrmann has already received $8,500 back and still has a few claims left to be investigated. He didn’t realise that when he took out a car loan, he was actually paying for two separate insurances for the one vehicle.
The Caboolture resident also discovered he was paying for junk insurance on his credit cards and personal loans. He said it was “disgusting” that he was duped into these policies.
“Car loans, novated leasing, credit cards and so on, you name it, I was stung with additional fees,” Herrmann said. “When I heard about Claimo, I just thought, ‘You never know, I’ll give it a go’. I got an answer back in three weeks saying I was eligible.
“I’d say to anyone out there who may have had any kind of loan and is doing it tough at the moment, that this is a no-brainer.”
How to check if you’re eligible for a refund
Here are the two main things you should look at:
Your credit card statements and loan contracts
The words “credit card insurance”, “consumer credit insurance” or “loan protection” (it may appear on or near the “interest changes” line)
If you find these references, or similar, chances are you’ve been charged junk insurance and could be entitled to a refund.
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