Tuesday, September 18th, 2018 - Consumer Action Law Centre

Consumer Action Law Centre is encouraging people to check the documents they signed when they bought their car, to see if they have been sold useless ‘junk insurance’ and to visit their free online platform DemandARefund.com to demand a refund for the premiums paid.

The Insurance Round of the Royal Commission is examining the issue of people paying for junk add-on insurance this week.

Junk insurance’ is a worthless insurance policy, most commonly sold with credit cards and car, personal and home loans without a person’s full knowledge. In fact, around 1 in 4 Australians don’t know that they have purchased these insurance policies.

These policies might be called Consumer Credit Insurance (or loan protection insurance or similar), Guaranteed Asset Protection (GAP) insurance and/or an extended warranty.

Denise Boyd, Director of Policy & Campaigns at the Consumer Action Law Centre says that their patience has worn thin with insurers doing the wrong thing by consumers.

"Enough is enough – insurers need to stop pushing this junk insurance and start refunding the many people they’ve ripped off."  Ms Boyd explains.

"Junk insurance is the insurance industry’s fee for no service. The industry is still trying to make money for doing nothing. It’s unacceptable that it’s still happening."

DemandARefund.com provides free practical assistance for people to make a claim for the return of their premiums. An insurer might offer you a partial refund. But if someone mis-sold you junk insurance you could get a full refund plus interest using DemandARefund.com.

DemandARefund.com helps people to generate a formal legal letter, with the reasons supporting the claim provided by an expert insurance lawyer to demand a refund. It is free and simple to use.

Since the Consumer Action Law Centre launched DemandARefund in 2016, over $1 million has been claimed by people who have been sold ‘junk insurance’.

Since 2016, Australian banks and insurers have agreed with the Australian Securities and Investments Commission (ASIC) to refund over $120 million of premiums paid by consumers for ‘junk insurance’ policies. [1]

According to ASIC, car dealers earned more than four times more in commissions than people got back in claims for add-on insurance over a three-year period. [2]

Consumer Action Law Centre is a not-for-profit centre that campaigns to make life easier for people experiencing vulnerability and disadvantage in Australia.  The Centre provides legal advice and financial counselling for people living in Victoria.

DemandARefund can be accessed at www.demandarefund.com.

- Copy ends -

[1] https://www.moneysmart.gov.au/insurance/car-insurance/add-on-insurance/refunds-for-unfair-sales-of-add-on-insurance

[2] ASIC consultation paper 294 August 2017 https://download.asic.gov.au/media/4422973/cp294-published-24-august-2017.pdf

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Consumer Action Law Centre


Consumer Action Law Centre is a not-for-profit centre that campaigns to make life easier for people experiencing vulnerability and disadvantage in Australia. As a nationally-recognised and influential policy and research body, Consumer Action pursues a law reform agenda across a range of important consumer issues at a governmental level, in the media, and throughout the community directly. As a community legal centre, Consumer Action provides free legal advice and pursues litigation on behalf of vulnerable and disadvantaged consumers across Victoria, and is the largest specialist consumer legal practice in Australia.


Sarah Boykett
M: 0403 193 146
W: consumeraction.org.au

Consumer Action Law Centre


Adam Sawell
M: 0401 096 507
W: consumeraction.org.au

Keywords

Banking Royal Commission, Consumer Action Law Centre, Junk Insurance, DemandARefund.com, Consumer Credit Insurance, Guaranteed Asset Protection

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