Claimo Says Millions Of Australians May Be Eligible For Junk Insurance Refunds They Don’t Know About

An estimated 4.7 million Australians could be eligible for refunds on junk insurance products sold alongside loans and credit products dating back to 2010, according to claims management firm Claimo. The company argues that only a small fraction of those affected have come forward.

The issue traces back to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which uncovered widespread problems with the sale of consumer credit insurance – policies that were often attached to loans without customers fully understanding what they were paying for or whether the products offered any value.

Complaints surging

Data from the Australian Financial Complaints Authority (AFCA) shows that awareness of the issue is growing. The authority received 7,880 complaints related to junk insurance in the last financial year, representing a 1,457 per cent increase since the 2021 financial year.

Despite that growth, Claimo contends the numbers represent only a fraction of those potentially affected. The company estimates millions of Australians who held loans or credit products over the past 16 years may have been sold policies they did not need or were not aware of.

One consumer’s experience

Victorian consumer Agis Vlahos recovered $3,932 after an investigation into his past accounts revealed consumer credit insurance had been attached to a personal loan.

“With the cost of living so high, it was reassuring to recover money that shouldn’t have been taken in the first place,” Vlahos commented.

He believes many Australians remain unaware that refunds may be available to them.

“A lot of people simply don’t realise they may have been paying for insurance they never needed,” he added.

Cost-of-living context

The refunds are emerging at a time when household budgets are under significant pressure. With cost-of-living increases continuing to affect Australian households, unclaimed refunds from historical financial products represent a potential source of funds that does not require taking on additional debt.

The issue has attracted media attention, with reports of refunds reaching into the tens of thousands of dollars in some cases.

How the claims process works

Companies such as Claimo investigate historical loans and credit products on behalf of customers to identify whether junk insurance policies were attached and whether refunds may be owed. The process typically operates on a no-win, no-fee basis, with fees applied only if a claim is successful.

Nathan Mortlock, Director at Claimo, noted that many customers are surprised by what they find.

“With cost-of-living pressures continuing to mount, these unexpected refunds can act as a meaningful buffer – helping households cover rising expenses without taking on additional debt,” Mortlock explained.

“Even if nothing is found, checking can give people peace of mind – but many are surprised by what they’re owed.”

Who should check

Australians who have held loans, credit cards or other lending products at any point since 2010 are encouraged to review whether consumer credit insurance was attached to those products. The AFCA complaints data suggests that as awareness grows, more consumers are discovering they were sold policies they did not request or understand.

Claimo operates as an Australian claims management service focused on helping consumers identify and recover potential refunds from financial products, including junk insurance policies attached to loans and credit cards.

Last Updated on April 29, 2026 by Nick Ross