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ASIC steps up against dodgy car yard insurance deals

By Cameron Micallef · October 02 2019
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ASIC steps up against dodgy car yard insurance deals

ASIC steps up against dodgy car yard insurance deals

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By Cameron Micallef · October 02 2019
Reading:
egg
ASIC steps up against dodgy car yard insurance deals

Have you bought a car and felt pressured by the salesperson to add on insurance and warranty products? You aren’t alone.

It’s such a widespread issue that the Australian Securities and Investment Commission has proposed to use its intervention powers to reform the sale of add-on financial products by car yards and protect consumers against costly add-ons. 

Announcing the consultation, ASIC commissioner Sean Hughes said the opening up of a consultation period on the proposal for reform follows consumer concerns.

He said there had been a history of unfair conduct and poor results for consumers in the add-on insurance market.

Mr Hughes said ASIC has further questioned the validity of these products when consumers look to claim on such policies.

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“We have seen policies sold to consumers when they have been ineligible to claim under them,” he commented. 

As a result, ASIC has previously secured over $130 million in refunds to compensate consumers for their losses from these practices. 

The product intervention power held by ASIC allows it to intervene where financial products have resulted in, or are likely to result in, significant consumer detriment.

As well as compensation for past conduct, the regulator said it will propose changes to improve consumer outcomes in the future.

ASIC steps up against dodgy car yard insurance deals
ASIC steps up against dodgy car yard insurance deals
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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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