More than 100,000 Australians are taking action against Australia’s big four banks over worthless credit card insurance.
Commonwealth Bank, ANZ, Westpac and NAB are in the firing line for charging customers upwards of $40 million for credit card insurance the didn’t need.
The insurance named CCI covered involuntary unemployment, sickness or injury.
Commonwealth Bank, ANZ, Westpac and NAB are in the firing line for charging customers upwards of $40 million for credit card insurance the didn’t need
The insurance named CCI covered involuntary unemployment, sickness or injury
Law firm Slater and Gordon are looking at the filing proceedings against the major banks.
They claim the insurance was offered to clients who were unemployed, already had a protected income, ruled ineligible because they worked for themselves or were over the maximum age.
Australian Security and Investments forced the Commonwealth Bank to refund the $10 million to 65,000 customers that were unemployed or students.
The Commonwealth Bank said they will end the CCI a week before the Financial Servcies Royal Commission hearing will begin tomorrow.
Law firm Slater and Gordon are looking at the filing proceedings against the major banks
Slater and Gordon won’t go after all four banks at the same time but the worst offender first
The class action is expected to reach up to $50 million according to the Daily Telegraph.
‘We have found substantial evidence to suggest that a large number of Australian credit-card holders are paying hundreds, if not thousands, of dollars a year for essentially worthless insurance,’ Slater and Gordon senior associate Andrew Paull said.
Mr Paull also said the insurance was sold to customers who did not need the coverage and the banks didn’t clearly state it was optional.
Slater and Gordon won’t go after all four banks at the same time but the worst offender first.
The Daily Mail contacted the CBA, Westpac, ANZ and NAB for comment.