Class action over credit 'junk'
Class actions are being launched against ANZ and Westpac over “junk” insurance policies.
Law firm Slater and Gordon claims the big banks sold credit card insurance to customers that they would never have been eligible to claim against.
The same law firm reached a $49.5 million settlement with the NAB over the same issue earlier in the week.
The lawyers allege the “junk” insurance products added thousands to credit card bills and personal loan repayments, despite providing little or no benefit to customers.
“Customers who trusted the big banks were ripped off and continue to be out of pocket after being pressured to sign up to worthless insurance cover,” Slater and Gordon practice group leader Andrew Paull said in a statement on Friday.
“Many people who purchased these insurance products had disabilities, were unemployed, or were critically ill, and therefore not eligible to claim against the insurance products.”
Mr Paull said some were told the insurance they bought was free or mandatory.