Consumer Credit Insurance, CCI, is an optional product that can be offered to you when you are applying for a personal loan, a home loan or a credit card. It is supposed to cover you in the event that you are not able to make the payments for the loan, due to circumstances out of your control.
CCI may not always cover all of your debt, and the terms of each insurance policy will differ from product to product. It will usually cover you in the event of unemployment, illness or injury that prevents you from working, disability and death. It’s important that you understand your policy and what you are covered for, to avoid being mis-sold CCI you can’t even claim.
Unfortunately, CCI mis-sells have become more and more common, and there are a growing number of class-action lawsuits to fight this injustice.
Mis-sells come in many forms, and here are just a few to look out for
It was added to your paperwork without your knowledge or consent
CCI is sometimes sold to consumers without them even knowing. They simply add their CCI product into your existing paperwork and hope that you don’t notice. Unfortunately, this is a common mis-sell.
It is Australian law that before you purchase insurance, the supplier discloses the product document. You should be able to make the decision on whether the product is right for you before you buy it.
The product was hidden as a part of a package, instead of being an individual item
CCI should be sold as its own individual product, which is optional for you to add on. It should not be hidden as part of a package you are buying. You should be able to opt-out.
You were sold a product you would have been ineligible to claim
The sale of consumer credit insurance should be limited to people who are actually going to benefit from having it.
If you are already unemployed, a casual worker, or ill, you may not even be able to claim your insurance. You will have been sold a product that is essentially useless to you.
It was made to seem like the insurance was mandatory
Sometimes sales agents will make it seem like buying consumer credit insurance is mandatory, in order to make the sale. This is not true, and you should not be made to feel like it is mandatory for you to get CCI in order to secure your loan.
The sales agent was pushy when selling CCI
The sales agent wants to upsell and make as much out of your sale as possible, and so often they might end up being pushy.
You can’t let yourself get trapped in a pushy sales pitch that doesn’t suit you or your needs.
Exclusion clauses were not properly explained to you
Many consumer credit insurance policies will have special exclusion clauses, which mean the insurance might not even be relevant for you. If you have a pre-existing medical condition, your payments could be voided.
If you think you have been mis-sold CCI start your claims process with us today. We do all the work for you, and we operate on a NO WIN NO FEE basis.
You have nothing to lose, but everything to WIN!