Consumer Credit Insurance, when you apply for a credit card, mortgage, or personal loan, you may have been offered a product called CCI or LPI .
Consumer Credit Insurance, when you apply for a credit card, mortgage, or personal loan, you may have been offered a product called CCI (Consumer Credit Insurance) or LPI (Loan Protection Insurance). The point of the insurance is to cover/protect you in the event that you cannot make the payments to the loan, this would be due to circumstances outside of your control.
The insurance covers a few different types of policies and you cannot get two policies the same, however they normally will cover for situations such as unemployment, illness, death, disability basically the type of stuff that can prevent you from earning an income. However, it is important to understand what does cover and what does not, CCI may not always cover all of the money you owe and it may only pay out a percent of the outstanding monies owed if for example you have a pre-existing health condition. All of this should have been explained to you with a detailed list of what was and was not included in your policy and then you should have been given the option to decide if it was right for you.
CCI was purchased with the intent of covering you if for whatever reason you could not make the credit repayments this could have been due to:
However, more often than not people ended up not wanting, needing, or even knowing they had this product and some were told when they were not even eligible for the insurance.
Good question, below are some examples of how Consumer Credit Insurance can be mis-sold to a client.
One of the worst forms of the mis-sell from the lenders is when they added the insurance to your policy without you even knowing about it or agreeing to it. Much like the English version PPI (Payment protection insurance) it is Australian law that before you purchase any insurance the supplier is to disclose the product document for you to read through and understand, this is so that you can make a proper decision on whether this insurance is right for you and have it be your choice.
Most customers were not given this paperwork as the supplier did not want to risk highlighting the insurance you had paid for. In most cases customers were not given the certificate of insurance however, if you did get this then this would have listed the insurance products you bought as well as other information such as:
Cost of premiums
Period of insurance
Sometimes this was confusing or not very clear and, in this case, you could have contacted your insurance company for a clear explanation and more details. However, it was there obligation to explain everything to you clearly.
Over the last few years, several class actions took place that have been successful, the good news is that it draws attention to the issues with CCI and other products such as LPI that were sold unwillingly etc. As great as class actions are ultimately this just adds you to a pool of people whereby you get an average payout and in most cases this is not anywhere near what you are owed and this also means that you are not allowed to reclaim one you have claimed once, you accept the payment in full and final settlement.
We want to make you aware that you have a few options when it comes to claiming:
As per the above you may only get a very small average of what is owed to you
We work on a no win, no fee basis, we are experts in claiming and can help get you the right amount of compensation and when/if we are successful, we only take a small % of the win
you just have to be careful here that you are not getting ‘blinded by science’ and that you do not accept an offer less than what it should be.
If you have already entered a class action, they may have forgotten to mention that you can opt out of this and take the claim up directly yourself or better still with a claim’s management company fighting for you. Depending on where you are up to with the class action you may be able to remove yourselves and then we can help make the complaint on your behalf.
We look after the whole process for you, so you do not have to:
NO WIN- NO FEE
Nothing to lose BUT everything to WIN