When Bogden Hulewicz took out a mortgage in 1992, little did he know that the “protection insurance” sold to him was useless.
The 62-year-old paid $8,000 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 among 10 Australians owed money from legacy insurance schemes set up in the 1980s.
A 2019 Royal Banking Commission revealed millions of people were tricked into buying junk insurance – coverage that is either unnecessary or worthless.
Financial institutions have been ordered to set aside $10 billion to reimburse people who bought junk insurance, but customers are not notified of any refunds owed and must collect the funds themselves.
Some have gone decades without knowing they are eligible for cashback and are now reclaiming anything from $1000 to $250,000.
Bogden Hulewicz has received $15,000 in insurance reimbursements since taking out his mortgage in 1992 after paying $8,000 in fees on a worthless policy. Credit: 7NEWS
Claimo helps Australians recover millions in millions of dollars in insurance claims.
The company handles the claims by commencing an investigation on behalf of the customer and requesting a 20 percent reduction plus GST for their efforts.
According to Claimo, the average refund is about $3400, but some refunds are life-changing.
Founder and CEO Nathan Mortlock said Claimo has an outstanding refund on a $250,000 credit card.
“For example, if you were sold a home loan in 1991 and were told you needed mortgage protection, there’s a good chance you’re owed a repayment,” he told 7NEWS.
For Hulewicz, that meant $15,000 in his account.
Gold Coast woman Sharon Hawke is another customer getting her money back.
She has received $2,500 so far, with another 4,000 on the way.
“I just named all the previous auto loans and creditors I had, mailed them to them and they got the job done,” she told 7NEWS.
Gold Coast wife Sharon Hawke happy to get $6,500 back in BPA refund Credit: 7NEWS
Data from the Australian Securities and Investments Commission released in September estimated that an additional US$1.6 billion remains to be paid to some 2.7 million consumers for redress for both legacy insurance and non-compliant advice fees.
Customers can complain to the Australian Financial Complaints Authority to start the refund process after speaking to their lenders.
If after 30 days they are unhappy with their response, 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 anyone to represent you,” Emma Curtis, lead insurance ombudsman, told 7NEWS.
– With Georgie Chumbley
How an Australian woman demanded $17,000 she didn’t know was owed to her
When a Queensland man demanded a $10,000 refund, he didn’t know it was owed to him
Millions of Australians owed a $1.6 billion share on junk insurance