When Bogden Hulewicz took out a mortgage in 1992, he had no idea that the “protection insurance” he was selling was useless.
The 62 year old paid $8000 in fees over the years for something he would never need.
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“I didn’t realize it was completely worthless,” he told 7NEWS.
Hulewicz is one of 10 Australians who owe money from a junk insurance scheme founded in the 80s.
A 2019 banking empire commission revealed millions of people have been conned into buying junk insurance – coverage that is unnecessary or worthless.
Financial institutions were ordered to set aside $10 billion to refund people who bought junk insurance, but customers weren’t notified of any refunds due and had to go after the funds themselves.
Some have gone decades without knowing they deserved a refund and are now claiming anywhere from $1000 to $250,000 in cashback.
Claimo is helping Australians with the process of getting back millions of junk insurance refunds.
The company processed the claim by launching an investigation for the customer, taking a 20 percent discount plus GST for their business.
Refunds average around $3400, says Claimo, but some payments are life-changing.
Founder and managing director Nathan Mortlock said Claimo had one pending refund on a $250,000 credit card.
“If you sold a home loan in 1991 for example and were told you needed to have mortgage protection, there’s a good chance you owed a refund,” he told 7NEWS.
For Hulewicz, this meant $15,000 back into his account.
Gold Coast lady Sharon Hawke is another customer who got her money back.
He has earned $2500 so far with another $4000 on the way.
“I just listed all the previous car loans, lenders I had, sent it to them and they have done the job,” he told 7NEWS.
Australian Securities and Investments Commission data released in September estimated an additional $1.6 billion was still due to about 2.7 million consumers in junk insurance remediation and fees for inappropriate advice.
Customers can lodge a complaint with the Australian Financial Complaints Authority to initiate the refund process after speaking with their lender.
If they are not satisfied with their response after 30 days, they should visit the AFCA website to file a complaint.
“We are free, independent and impartial and when you come to us you don’t have to pay someone to represent you,” chief ombudsman for insurance Emma Curtis told 7NEWS.
– With Georgie Chumbley