6 Million Aussies Could Be Eligible for a Cash Refund, Thanks to ‘Junk Insurance’

Junk insurance refund

Let your parents know: a $10 billion ‘junk insurance’ refund pool is just waiting to be splashed in by Australians aged 60 and over.

The $10 billion dollar fund was set up by banks and big lenders after it was ordered to be set aside following the 2019 final report from the Royal Commission into Misconduct in the Bank, Superannuation and Financial Services Industry, which found that millions of people had been duped into buying ‘junk insurance’ (a term that refers to coverage that’s either unnecessary or worthless).

This means that more than six million Australians aged 60 and over could be eligible for the dodgy insurance cash refund, said to be valued between $3,400 to $70,000 per person, according to insurance refund experts Claimo.

“What this means is, there could be millions in junk insurance refunds available for our over-60s alone — money which could help with everyday bills, pay down any debt or even afford a holiday,” Nathan Mortlock, director of Claimo, told Yahoo! Finance.

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“We know a million or so seniors are owed money, yet only a few thousand have come forward to claim their refunds. If you’re over 60 and had loans during your lifetime, you are very likely to be owed money.”

Mortlock said over-60s who have ever had a credit card or obtained finance to buy a car might also be eligible, and that even if you had a loan with a respectable bank or lender, it’s still worth checking to see if you are.

“Shockingly, most victims don’t even know they have paid for junk insurance, or could be owed a refund,” Mortlock said.

So, how can your parents check if they’re eligible? Mortlock advises them to look through old and current credit card statements and loan contracts for 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, if you’re aged 60 or over, could be entitled to a refund.

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