When Bogden Hulewicz took out a mortgage in 1992, he had no idea the “protection insurance” he had been sold was useless.
The 62-year-old paid $8000 in fees over the years for something he would never need.
WATCH THE VIDEO ABOVE: One in 10 Aussies owed money from junk insurance schemes
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“I didn’t realise it was completely worthless,” he told 7NEWS.
Hulewicz is among the one in 10 Australians owed money from junk insurance schemes set up in the 80s.
A 2019 banking royal commission revealed millions of people had been duped into buying junk insurance – coverage that is either unnecessary or worthless.
Financial institutions were ordered to set aside $10 billion to refund people who purchased junk insurance, but customers are not notified about being owed refunds and have to chase up the funds themselves.
Some have gone decades without knowing they are entitled to cash back and are now claiming back money from $1000 to $250,000.
Claimo is helping Australians with the process of getting back millions in junk insurance refunds.
The company processes the claims by launching an investigation for the customer, taking a 20 per cent cut plus GST for their efforts.
The average refund is about $3400, Claimo says, but some repayments are life-changing.
Founder and managing director Nathan Mortlock said Claimo had one refund pending on a credit card that was worth $250,000.
“If you were sold a home loan in 1991, for example, and were told you had to have mortgage protection, there’s a good chance you’re owed a refund,” he told 7NEWS.
For Hulewicz, this meant $15,000 back in his account.
Gold Coast woman Sharon Hawke is another customer who is getting her money back.
She has received $2500 so far with another $4000 on the way.
“I just named all the previous car loans, creditors I had, sent it to them and they’ve done the work,” she told 7NEWS.
Australian Securities and Investments Commission data released in September estimated a further $1.6 billion is yet to be paid to about 2.7 million consumers for remediation for both junk insurance and fees for non-compliant advice.
Customers can complain to the Australian Financial Complaints Authority to start the refund process after speaking with their lenders.
If they are unhappy with their response after 30 days, they should visit the AFCA website to lodge a complaint.
“We’re free, independent and impartial and when you come to us you don’t need to pay somebody to represent you,” lead ombudsman for insurance Emma Curtis told 7NEWS.
– With Georgie Chumbley
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