A spell of dishonest car loan insurance has brought a Northern Territory credit insurance company into the limelight for all the wrong reasons.
More than $350 million in ineffective car loan insurance has been sold by Consumer Credit Insurance, in many instances without the customer knowing.
The product is intended to provide protection to purchasers who can’t make payments after losing a job or becoming ill, but the insurer has been caught out selling protection to the unemployed and seriously ill.
It is estimated that 175,000 ineffective policies have been issued in the past five years.
Consumer Action Law Centre has launched a ‘Stop Selling Junk’ campaign to raise awareness and help guide mislead consumers to refund.
ASIC has already issued a warning to insurers and call for them lift their game in the wake of dishonest add-on insurance products.