ASIC threatens action over junk insurance

The financial regulator is threatening action against lenders including the major banks over the sale of add-on loan and credit card insurance that “has consistently failed consumers”.

An Australian Securities and Investments Commission report released on Thursday found that consumer credit insurance represented extremely poor value for money and was regularly mis-sold.

ASIC has warned lenders to clean up their act or face civil penalties over junk insurance, which was a focus of last year’s financial services royal commission and has led to refunds from the likes of Commonwealth Bank, QBE and Suncorp.

AAP

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