A financial product is considered mis-sold under a few different conditions, but most commonly when a regulated financial institution suggests a product that is not suited to your circumstances.
Recently there has been a massive increase in mis-selling Consumer Credit Insurance (CCI) products.
So, how do you handle mis-sold consumer credit insurance?
What Is CCI?
First, it’s important to understand what Consumer Credit Insurance is.
CCI is a type of insurance that is meant to protect you in the event that you are no longer able to pay off your loan. It is often advertised as an add on insurance product for credit cards, personal loans and mortgages.
Each policy is unique, so it’s important that you understand the individual terms and conditions of the product you are being offered. It is the lender’s duty to properly explain this to you.
Consumer Credit Insurance would typically cover you in the event of;
- Involuntary unemployment
- Medical issues
- Disability
- Death
Whether you need a CCI policy will completely depend on your personal circumstances. However, it is important to note that many of these policies are terrible value for the consumer.
Types of Mis-sells
Understanding the common types of mis-sells can help you better equip yourself to not be taken advantage of in the future.
Unfortunately even when you seek professional advice from a financial advisor you may still receive false or misleading representations of a product or service.
Here are common mis-sells to look out for;
- The lender sells a policy to you even though we would be ineligible to claim, or unlikely to need the cover
- The salesperson pressures you into buying, or makes misleading representations to the customer
- You were incorrectly charged for your CCI policy, or your claim is incorrectly declined
- You held an exempt VISA
- CCP or LPI was added into your paperwork without your knowledge
- The product was disguised with another package as a promotion or sale, instead of an individual item
- Special exclusion clauses were not adequately explained to you
How To Get Your Money Back
With new laws and legislation in place, there have been many class actions put in place to help people recover money they lost from mis-sold CCI or Loan Protection Insurance (LPI).
While these are great, the issue is in some cases you only end up with average pay out that does not accurately reflect the money you are owed.
Class actions can also take significantly longer to process than claiming as an individual.
Claims management companies, such as RTR Claims, are a fantastic option to help you manage your claim more directly and efficiently.
You can start your claims process through us, and we will take care of it all on your behalf. If you have already signed on for a class action, you may still be able to remove yourself.
Claims management companies often have a higher success rate than individuals claiming on their own. If you have been a victim of a mis-sell, we’re here to support you. We work on a No Win, No Fee basis, meaning you have nothing to lose.
Contact us to get started on lodging your claim!