Latitude Financial to refund customers to the tune of $1.1 million
Aussie lender, Latitude Financial will refund 905 customers a total of $1.1 million for over-selling consumer credit insurance between 2011 and 2014, according to ASIC.
The lender - known for their advertisements featuring Hollywood actor, Alec Baldwin - had denied claims from personal loan insurance customers trying to activate the involuntary unemployment cover in their policies, on the basis that they were not working 20 hours per week.
Acting ASIC chairman Peter Kell said that insurance companies should never be able to sell a policy that a customer couldn’t actually make a claim on.
“'Customers should always be confident that when they come to claim on their insurance, their claim will be properly assessed,” he said.
ASIC also said that the credit provider’s new and partly-automated claims assessment process had incorrectly denied credit card insurance customers claims from May 2014 to February 2017.
As a result, Latitude will be required to pay claims and interest to affected credit card insurance customers as well as refund premiums and pay interest to personal loan insurance customers.
Latitude will now contact affected customers, but in the meantime, if you would like to know whether or not the refunds apply to you or if you have any other general enquiries, contact the Latitude Insurance Customer Service line on 1800 800 230.