Credit insurance mis-selling 'is on ASIC's radar'

Leaders at the Australian Securities and Investments Commission (ASIC) say the issue of mis-sold credit insurance is on its radar.

The organisation is looking into claims that banks and lenders have duped people who have taken out credit cards or personal loans into paying for cover that they do not really need, the Sydney Morning Herald reports.

There has been a massive payment protection insurance scandal in the UK in the past few years and loan providers have been forced to reimburse many customers.

Personal finance commitments increased by 2.6 per cent in seasonally adjusted terms in Australia in September, according to figures provided by the Australian Bureau of Statistics and reported by AAP.

Some Aussies may have ended up with consumer credit insurance without realising it, while others could have been pressured into paying for it.

Chief executive of the Australian Bankers' Association Steven Munchenberg told the news provider the problems outlined by ASIC are nowhere near as big as those that have caused such a stir in Britain.

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