In June 2020, law firm Slater & Gordon commenced legal proceedings against Commonwealth Bank of Australia (CBA) and Colonial Mutual Life Assurance Society Limited on behalf of customers who were sold worthless consumer credit insurances with their Commonwealth Bank credit card or CBA personal loan.
The Commbank class action is based on allegations that the Respondents used unconscionable conduct; used; and failed to act in the best interests and provided inappropriate advice to customers who purchased the policies.
Some of the consumer credit insurances sold to CBA credit card and personal loan customers include:
You may be a class member if at any time since 1 January 2010, you:
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”.
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. If you’d like to know more about this, you can contact our friendly Melbourne based team. We’re experts when it comes to class actions, our team have specialised in law and financials for many years.
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 Class Action recently settled and members will receive $90,147 million. Insurance Australia Group estimated the class action could have been worth up to $1 billion meaning members may receive less than 10 cents in the dollar.
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 settle most claims within three months.
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
If you receive notice that you are a group member of the Commonwealth Bank class action and do not wish to remain a member, you will need to opt out. You can do this once the Federal Court makes the opt-out notice available.
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 can contact the Court citing the proceeding number and request a copy of the opt out form
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.