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ANZ Consumer Credit Insurance Class Action

In February 2020, law firm Slater & Gordon filed a class action against Australia and New Zealand Banking Group, OnePath Life, OnePath General Insurance and QBE Insurance (Australia) on behalf of consumers who were sold worthless add on insurances with their ANZ personal loan or credit card.

The class action alleges that ANZ customers who held consumer credit insurances for their ANZ credit cards or personal loans cause customers to make payments based on the belief they were compulsory or provided value; the respondent engaged in misleading and deceptive conduct; engaged in unconscionable conduct; and unlawfully provided personal advice to customers who purchased the policies.

Some of the consumer credit insurances sold to ANZ customers include:

  • ANZ Credit Card Insurance/CreditCover Plus; and
  • ANZ Loan Protection.
 

The class action alleges ANZ used unfair sales tactics to sell unnecessary insurances to customers who were ineligible to claim on the policies.

Junk Insurance Class Actions

In 2018, The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry revealed that Australia’s big four banks had been ripping off customers by selling unnecessary and worthless insurance products attached to loans and credit cards.

Law firms are now investigating potential class actions against insurance companies on behalf of customers who paid for “add-on” insurance products when purchasing a motor vehicle, loan, or credit card.

These products are also referred to as “junk insurance”.

What is a Class Action?

A class action is type of legal proceeding in which a person (the applicant or plaintiff) brings a claim on behalf of a wider group of people against a respondent.

What to know about Class Actions & your pay-out

Consumers may be able to receive a better refund by opting out of the class action and using Claimo instead or pursuing the refund themselves through the firms dispute resolution channel.

Based on previous class actions for junk insurance, members received significantly less than they were charged. For example, Swann Insurance recently settled a junk insurance class action for $138 Million, however the total charges were around $1 Billion. Legal fees are being deducted from the settlement amount, which means members may receive one tenth of what they were charged.

By pursuing a refund independently, you can pursue a full refund (plus interest charges) whereas the class action generally agrees on an amount which is divided amongst members.

Class Actions can also take up to three years to settle whereas Claimo generally settles claims within three months.

Australian Opt-Out Model

Australian Class Actions use an opt-out model. This means that all people affected by the event or circumstance become members of the class action whether they intended to or not.

These members are legally bound by the decision of the court or settlement unless they opt-out of the proceedings.

 Thousands of members do not receive their opt-notice because they have changed addresses and do not register for compensation in time which means they are unable to get a refund on junk insurance

How to Opt-Out

 If you do not wish to participate in the ANZ CCI Class Action, you will need to take steps to remove yourself from the proceeding (known as “opting out”) before 4.00pm AEDT on 12 February 2021 (Opt Out Deadline).

If you opt out, you will need to complete an opt out form and send it to the Supreme or Federal Court who is dealing with the class action.

If you ‘opt out’ of a class action, you remove yourself from a claim entirely. This means you will not be affected by the outcome of a class action at all and will be able to pursue your own individual claim for the same issues separately if you wish to.

If you wish to opt out of the class action, you need to complete the opt out notice and return it to:

Registrar of the Federal Court of Australia 

305 William Street, 

Melbourne 

Vic 3000

DISCLAIMER: This article does not provide legal or financial advice. Any information in this article is designed to provide information to consumers who want to learn more about class actions. All information is general in nature. Claimo is not liable for any loss caused, whether due to negligence or otherwise arising from use of, or reliance on, the information provided directly or indirectly, by use of this service.  Consider whether the service is right for you. If you are unsure, seek independent legal advice.