HUNTER residents are receiving thousands of dollars in refunds for dodgy insurance and financial fees exposed by the Banking Royal Commission.
Their claims are being made through a system set up in response to the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The commission found that banks and insurers used pressure tactics to sell billions of dollars worth of junk insurance, and that many financial advisers charged fees for services they never provided. As at December 2020, the Australian Securities and Investments Commission was monitoring claims worth up to $3.55 billion involving more than 3.6 million people on issues including 'fee for no service' affecting all of the major banks.
Monique Gasson, the general manager of consumer remediation service 'Remediator', which helps individuals make claims, said many people had no idea they were eligible.
"The Banking Royal Commission revealed millions of Australians had paid for junk insurance and ongoing financial advice fees where they received no service," she said.
The major candidates include Consumer Credit Insurance, often sold as an add-on insurance at the time of applying for a credit card or loan, in many cases to people who were ineligible to claim or unlikely to benefit or need cover.
Financial advice fees for ongoing financial advice which was never received is another major claim category.
Hunter-based miner, Danny Lawson, received a refund of $4,484 which he had paid on his credit card for Consumer Credit Insurance.
The policy was to provide cover if he was unable to meet minimum monthly loan repayments due to unemployment, sickness or injury.
However, in Mr Lawson's case, the insurance was added to his personal loan and credit card without his knowledge.
"Unfortunately many (people) have no idea they're eligible to receive funds".
Remediator general manager, Monique Gasson.
Due to the fact he was unaware the policy was added, Mr Lawson could not have been told about the exclusions and limitations of the policy, which is another fault category.
A spokesman for Remediator said the average Hunter claim was $2,776.
