Published on January 18, 2018 9:18 am, by Pete Lalor
National Warranty Company (NWC) sold warranties for car repairs.
NWC sales staff received commissions on the sales they made and the commissions were based on the premium they managed to charge the client. The higher the premium, the higher the commission. This remuneration structure is illegal under the Future of Financial Advice legislation introduced in 2013.
NWC have agreed to refund 6,367 customers the difference between the premium they paid and the lowest premium at which the the same product was sold – a total of $4.9m.
The affected warranties were sold between July 2013 and May 2015.
The refunds do not affect the operation of the warranty and customers can still claim under warranty for claims covered by the terms of the warranty.
National Warranty Company is contacting affected customers during January 2018. Customers with questions about their cover should contact NWC by email: email@example.com
Further information is also available from ASIC.
With three refund programs worth more than $100m already this year, the moral for consumers seems to be think twice or even three times before you agree to any form of “add on” insurance.
At MoneyBrilliant, we’ve got your back. We’ve automatically contacted MoneyBrilliant customers that might be entitled to a refund. It’s all part of the MoneyBrilliant service. To make sure you know about refunds you might be entitled to sign up now at moneybrilliant.com.au
Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.