LAW firm Slater and Gordon has announced class actions against ANZ and Westpac for selling “junk” insurance policies to unsuspecting customers.
The firm claims the big banks sold worthless credit card insurance to customers they would never have been eligible to claim against.
The action comes just two days after the firm reached a $49.5 million settlement with the NAB over the same issue.
Slater and Gordon practice group leader Andrew Paull saiWatchdog unleashed on big banks’ ratesd the “junk” insurance products added thousands to credit card bills and personal loan repayments while providing little or no benefit to customers.
“Customers who trusted the big banks were ripped off and continue to be out of pocket after being pressured to sign up to worthless insurance cover,” he said in a statement on Friday.
“Many people who purchased these insurance products had disabilities, were unemployed, or were critically ill, and therefore not eligible to claim against the insurance products.”
Mr Paull said others were led to believe the insurance they bought was free or mandatory.
The law firm has been contacted by hundreds of ANZ and Westpac customers who are interesting in participating in the claim.
The products were known as:
* ANZ Credit Cover
* ANZ Credit Cover Plus
* ANZ Loan Protection
* Westpac Credit Card Repayment Protection
* Westpac Personal Loan Protection