Consumer credit insurance (“CCI”) is sometimes sold to people when they borrow money to buy a house or car, get a credit card or enter into other arrangements to get finance. It usually covers people for injury and illness and sometimes even involuntary loss of employment.
Often people do not know they have CCI cover as it can be sold to them as part of the loan application process.
Usually CCI policies provide monthly payments to cover the repayments on the loan or a lump sum payment to clear the debt. The benefits can be life changing to those that get sick or injured and have to stop working.
Sometimes CCI is sold to people when it shouldn’t be.
For example, the person may not be working because they have retired or they are sick. In such cases, the benefits that are provided by CCI may not be appropriate and people can be paying a monthly premium for an insurance benefit that they may need.
We sometimes hear this insurance being referred to as ‘junk insurance’. To find out more about please visit the “Junk Insurance” page with Consumer Action. Likewise, if you have a grievance about the CCI you've been sold, give us a call to find out your rights.