How you can earn $ 7,500 in the blink of an eye if you’ve taken out a credit card or loan from a major bank

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Millions of Australians can get $ 7,500 back on unnecessary mortgage and credit card insurance – and they don’t even need old papers.

For years, Marie Chronopoulos, a mother of four and Melbourne grandmother, had spent thousands of dollars on insurance related to Commonwealth Bank of Australia loans.

She was paying for expensive monthly mortgage insurance for two homes in the Queensland area, when she already had the 20% deposit needed for both properties when she took out loans almost two decades ago.

Then there was the mortgage and personal loan insurance from the ABC where repayments would be insured in the event of illness or injury.

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Australians can get $ 7,500 back on unnecessary mortgage and credit card insurance – and they don’t even need old papers. For years, Marie Chronopoulos, mother of four and grandmother from Melbourne, had spent thousands of dollars on insurance related to Commonwealth Bank of Australia loans.

The problem is that these “junk insurance” products pay very little to consumers, with banks using leverage until recently to deceive borrowers at the time of loan approval.

Borrowers with a 20 percent mortgage deposit don’t need mortgage default insurance – a product that is not questioned.

In these situations, banks have sold unnecessary consumer credit insurance for many years, often with obscure names.

While the Commonwealth Bank no longer sells this product, the business regulator is taking legal action against the big banks for fooling customers into subscribing to these products.

Even if banks end up fined, individual consumers get nothing back unless they claim a refund, are part of a class action lawsuit, or are contacted by their bank – which the ABC does.

To see if they qualify for a refund, they can use consumer remediation services established last year as a result of the Royal Banking Commission.

In mid-July Ms Chronopoulos contacted insurance reimbursement group Remediator after seeing a post on Facebook and by September she had received $ 7,484 after paying a 20% fee on a no-win basis. , free of charge.

“It was one of the nicest surprises – the longest lockdown ever and receiving that was just great,” she told Daily Mail Australia.

“Make a complaint, I tell you what, it’s really worth it. I put all my friends there and they all made phone calls and a lot of them got feedback as well.

Safety adviser Ms Chronopoulos plans to spend her insurance reimbursement on a January trip to Yeppoon, coastal Queensland, to see her loved ones after nearly two years apart due to the border closure of the Pandemic state of Covid.

In mid-July Ms Chronopoulos contacted insurance reimbursement group Remediator after seeing a post on Facebook and by September she had received $ 7,484 after paying a 20% fee on a no-win basis. , free of charge.

In mid-July Ms Chronopoulos contacted insurance reimbursement group Remediator after seeing a post on Facebook and by September she had received $ 7,484 after paying a 20% fee on a no-win basis. , free of charge.

What is consumer credit insurance?

This complementary insurance product is often sold to borrowers who take out a mortgage, personal loan or credit card.

As of October 5, 2021, banks can only sell this “junk insurance” product to the customer four days after approval of a loan or line of credit.

These insurance products cover a consumer if he suffers from an illness or injury.

The problem is, they pay very little, with One Big Switch estimating that only 11 cents came out for every dollar spent.

The rebate, which will help fund the cost of a sought-after hotel room near the beach, didn’t require her to thoroughly search for old documents from many years ago.

Instead, she just told Remediator about her past and present Commonwealth Bank loans and credit cards and they matched the insurance details.

‘Extremely easy. It’s just about having a conversation with one of their consultants and giving them details like what products you’ve had with ABC and then they get to work from there, ”said Mrs Chronopoulos.

“I didn’t have a lot of these documents, I basically gave Remediator the product information I had, like loans, and then they did their investigative work.

“I don’t have these papers, a lot, I’m from Queensland so I moved to Melbourne and that was just my memory of those loans.”

Ms. Chronopoulos then had to confirm that she was not aware of what had been sold to her.

“The bank then emailed me asking, ‘Did I know about this product that had been sold to me? And I said, “Well, no. Obviously I wasn’t” and from there they accepted the request, “she said.

In her case, the Commonwealth Bank paid her off the mortgage and the CBA personal loan because it was her own insurance company CommInsure.

CGU repaid a loan it had taken out from the Rock Building Society.

A spokeswoman for the Commonwealth Bank said it stopped selling consumer credit insurance as of 2018 during the time of the Royal Banking Commission.

Consumer advocate Joel Gibson, campaign manager for One Big Switch, said consumer credit insurance pays very little, with ASIC estimating it gives back 11 cents for every dollar paid by customers.

“There could be millions more still owed refunds,” he said.

Consumer advocate Joel Gibson, campaign manager for One Big Switch, said consumer credit insurance pays very little, typically donating 11 cents for every dollar paid by customers.

Consumer advocate Joel Gibson, campaign manager for One Big Switch, said consumer credit insurance pays very little, typically donating 11 cents for every dollar paid by customers.

Big banks have been charged with selling unnecessary loan insurance products to customers, with some products costing $ 2,000 a year.

The Australian Securities and Investments Commission has filed 30 criminal charges against the Commonwealth Bank for selling breakage insurance between 2011 and 2015 and Australia’s largest mortgage lender faces fines of $ 51 million.

The CBA issued a statement on September 16 confirming that it had “fully cooperated with ASIC during its investigation and would plead guilty to the charges, consistent with a statement of facts presented by the Commonwealth Director of Public Prosecutions” .

Safety adviser Ms Chronopoulos plans to spend her insurance reimbursement on a January trip to Yeppoon, coastal Queensland, to see her loved ones after nearly two years apart due to the border closure of state due to the Covid pandemic.

Safety adviser Ms Chronopoulos plans to spend her insurance reimbursement on a January trip to Yeppoon, coastal Queensland, to see her loved ones after nearly two years apart due to the border closure of state due to the Covid pandemic.

The business regulator has also launched civil proceedings against Westpac for selling questionable credit card insurance.

More than 580,000 Australians have been reimbursed more than $ 250 million after being tricked into purchasing consumer credit insurance, which covers loans and credit cards.

On October 5, new laws came into effect requiring banks to wait four days before selling consumer credit insurance.

Consumers now have the right to a full refund and cancellation if insurance is sold to them within four days of loan approval.

The Remediator estimates that one in four Australian adults could be reimbursed for junk insurance products, with banks often resorting to high pressure tactics to trick consumers into buying a premium they didn’t need.

In a joint investigation with Remediator, Gibson found that 5.6 million “top-up” insurance products were sold between 2014 and 2020, meaning many more consumers are eligible for reimbursements.

In July 2018, CBA stopped selling CreditCard Plus (CCP) and Personal Loan Protection insurance.

In November 2019, the bank stopped selling Home Loan Protection insurance.

In 2019, the Commonwealth Bank set aside $ 2 billion for consumer cleanup to cover junk insurance and no-service charges after the Royal Banking Commission issued scathing findings on big banks .

The National Australia Bank also set aside $ 2 billion for the same purpose and settled a $ 49.5 million junk insurance class action lawsuit.

“You claim what is rightfully yours, it’s just sitting in the coffers of the banks,” Mr. Gibson said.


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