When Courtney Ward received an unsolicited text message telling her she may be entitled to cash from a class action settlement, the Melbourne resident thought it was “a scam”.
- Consumer credit insurance has been criticised for years as “junk”
- Through class actions, remediation and private services, Australians have clawed back $500m they have paid
- New laws come into play today that could curtail the sale of junk insurance in some settings
“I did not click the link for more information because it seemed like a scam,” she says.
It was only when she received another text this year — and then complained to her sister who had gotten cash back from the Robodebt class action — that Ms Ward was prompted to investigate further.
She read up and learned that she may be entitled to compensation for $784 in insurance that she had long forgotten paying for when buying a car on finance back in 2015.
“I knew nothing of class actions. I’d never been involved in the class action before,” she says.
Ms Ward is not alone.
Scores of Australians who have paid for so-called “junk insurance” are now clawing back hundreds of millions in cash from the finance sector through class actions, private services and remediation.
This comes as new federal reforms are being implemented today in an attempt to curtail the sale of the long controversial financial product.
What is ‘junk’ insurance?
Consumer credit insurance (CCI) has historically been tacked onto millions of credit card, personal and…