Published on March 19, 2018 10:05 pm, by Pete Lalor
Credit card insurance being sold by major banks is on the nose.
We’ve been warning customers to make sure they understand what they are getting, that it is appropriate for them and that they are getting value for money for a long time now. Here is an article we posted in September 2016.
We aren’t alone. Choice have been very vocal about the pitfalls of credit card insurance and so have ASIC.
Commonwealth Bank themselves have taken steps to refund some premiums paid by customers and most recently the Royal Commission into the Financial Service industry has highlighted how poor these products can be for customers. If you are still paying for Credit Card Insurance we encourage you to check the features and benefits of the product and what it costs you. Common problems are features and benefits that customers can’t actually use, customers not actually being aware that they are paying for the insurance, customers mistakenly thinking that they must have the credit card insurance and poor value for money.
If you are a Commonwealth Bank customer you should read this article and see if you are entitled to a refund of some or all of your premiums.
You might also be interested in a class action which is being considered by a major legal firm. More information is available on the class action here.
Ultimately, you need to decide if your credit card insurance is useful and is good value for money. If it is – that’s great. If not, we suggest you contact your Bank today!
This summary has been prepared by MoneyBrilliant Pty Ltd (AFSL 492711). The information in this summary is of a factual nature only. We are not suggesting or recommending that you take any particular course of action in relation to any financial product or service. It does not take into account your personal circumstances or objectives. If you need financial advice you should seek advice from a licensed financial adviser.
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.