Lenders cop it for ‘consistently failing’ consumers
1 minute read

Lenders cop it for ‘consistently failing’ consumers

Lenders cop it for ‘consistently failing’ consumers

by Reporter | July 11, 2019 | 1 minute read

Consumer credit insurance, which is often sold by lenders to borrowers when they take out a mortgage, has copped a lashing from the corporate regulator for failing Australian investors. 

by Reporter
July 11, 2019

Typically, consumer credit insurance (CCI) provides cover for investors if they are unable to meet their minimum loan repayments due to serious life events such as death, unemployment or injury.

The results of a review of the market by the corporate regulator were scathing. 

Overall, the ASIC report found that:

- Consumers were sold CCI despite the fact they were ineligible to claim under their policy.
- Consumers were given non-compliant personal advice to buy unsuitable policies.


“We are deeply troubled by the findings in our report, and the stories they tell of unfair practices occurring within Australia’s largest and most well-known financial institutions,” ASIC said. 

“Lenders and insurers have had more than enough time to improve sales practices and provide better value for consumers,” ASIC said. 


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