Invest
Junk insurance claims another 2 class actions
Slater and Gordon is launching new class actions against two of Australia’s largest banks, placing junk insurance firmly back into the financial spotlight.

Junk insurance claims another 2 class actions
Slater and Gordon is launching new class actions against two of Australia’s largest banks, placing junk insurance firmly back into the financial spotlight.

ANZ and Westpac are under fire for selling junk insurance products to “potentially hundreds of thousands of unsuspecting, vulnerable customers”, the law firm has reported.
It comes just days after Slater and Gordon settled a similar case with NAB for $49.5 million, “providing compensation to those who bought the worthless insurance”.
The firm noted that the consumer credit insurance class actions are part of a series of cases following from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which heard that banks were using pressure sales tactics to sell unnecessary credit card and personal loan insurance to vulnerable customers ineligible to make claims under the policies.
Practice group leader Andrew Paull said, “Banks have been abusing their power by selling junk insurance products, adding thousands to their customers’ credit card bulls or personal loan repayments while providing little or no benefits to the customer.”
“Customers who trusted the big banks were ripped off and continue to be out of pocket after being pressured to sign up to worthless insurance cover,” he continued.
“Many people who purchased these insurance products had disabilities, were unemployed, or were critically ill, and therefore not eligible to claim against the insurance products.”
While others “were simply led to believe the insurance they bought was free, or mandatory,” he outlined.
“Neither was the case.”
Slater and Gordon noted ASIC’s finding that ANZ, Westpac and other banks and insurers across Australia have collected over $1.78 billion in premiums on consumer credit insurance products over the last eight years, while returning only 11 per cent of that amount back to consumers in claims made on the policies.
ASIC’s 622 Report also found that ANZ and Westpac were selling consumer credit insurance products which, in some cases, returned even less to customers than the products offered by NAB.
Since 2011, ANZ’s credit card cover has allegedly returned, on average, less than seven cents in the dollar to consumers, while Westpac’s credit card insurance returned less than 12 cents in the dollar.
Products that comprise the class action claims include: ANZ credit cover, ANZ credit cover plus, ANZ loan protection, Westpac credit card repayment protection and Westpac personal loan protection.
Slater and Gordon has indicated that the new class actions will be run on a no win, no fee basis and will not be backed by a litigation funder.
About the author

About the author


Insurance
‘Shocking and horrifying’ outdated stigmas deny Aussies access to insurance
Outdated mental health stigmas are seeing young Australians being denied access to health coverage, new research has revealed. ...Read more

Insurance
440,000 Australians now eligible for ANZ insurance class action
More than 440,000 Australians have received notice from the Federal Court advising that they may be eligible to be part of Slater and Gordon’s consumer credit class action against ANZ and insurers O...Read more

Insurance
Misleading travel insurance claims fly Allianz into trouble
The corporate regulator has revealed that it is taking Allianz Australia’s insurance arm to court for the misleading sale of travel insurance through Expedia websites. ...Read more

Insurance
What’s wrong with disability insurance?
Disability insurance needs to be “simpler and cheaper” for all Australians, with a focus on return to health and work, a taskforce has found. ...Read more

Insurance
5 reasons landlord insurance is a worthwhile investment
Peace of mind is just one of the reasons a landlord should stay up to date with insurance, even as the COVID-19 crisis causes people to more closely scrutinise their finances. ...Read more

Insurance
3 financial institutions face class action over insurance advice
A class action lawsuit has been filed in the Federal Court against three large financial institutions, which have been accused of breaching its best interests duty obligations. ...Read more

Insurance
Over 650,000 members lose insurance from early super
More than 650,000 super fund members are projected to lose their life insurance as a result of the government’s early release scheme, new research has found. ...Read more

Insurance
Fool-proofing your insurance with a financial adviser
Did you know advised individuals are more likely to be successful when making an insurance claim? Here’s why. ...Read more

Insurance
‘Shocking and horrifying’ outdated stigmas deny Aussies access to insurance
Outdated mental health stigmas are seeing young Australians being denied access to health coverage, new research has revealed. ...Read more

Insurance
440,000 Australians now eligible for ANZ insurance class action
More than 440,000 Australians have received notice from the Federal Court advising that they may be eligible to be part of Slater and Gordon’s consumer credit class action against ANZ and insurers O...Read more

Insurance
Misleading travel insurance claims fly Allianz into trouble
The corporate regulator has revealed that it is taking Allianz Australia’s insurance arm to court for the misleading sale of travel insurance through Expedia websites. ...Read more

Insurance
What’s wrong with disability insurance?
Disability insurance needs to be “simpler and cheaper” for all Australians, with a focus on return to health and work, a taskforce has found. ...Read more

Insurance
5 reasons landlord insurance is a worthwhile investment
Peace of mind is just one of the reasons a landlord should stay up to date with insurance, even as the COVID-19 crisis causes people to more closely scrutinise their finances. ...Read more

Insurance
3 financial institutions face class action over insurance advice
A class action lawsuit has been filed in the Federal Court against three large financial institutions, which have been accused of breaching its best interests duty obligations. ...Read more

Insurance
Over 650,000 members lose insurance from early super
More than 650,000 super fund members are projected to lose their life insurance as a result of the government’s early release scheme, new research has found. ...Read more

Insurance
Fool-proofing your insurance with a financial adviser
Did you know advised individuals are more likely to be successful when making an insurance claim? Here’s why. ...Read more