Up to 30,000 Aussie Home Loan mortgage holders will fight for refunds on alleged worthless insurance policies, after Shine Lawyers filed a class action in the Federal Court on their behalf. The action is being partly funded by Woodsford, a leading global ESG, access to justice and litigation finance business.
The claim alleges that homeowners who were sold Mortgage Protection Plan or My Protection Plan policies by Aussie Home Loans were misled into purchasing a product of little to no value.
Shine Lawyers’ Class Actions Practice Leader, Kione Johnson, who is spearheading this case says the claim will allege that mortgagees were sold a junk policy.
“The policy promised mortgage-holders assistance for home loan repayments in the event of illness or injury, loss of employment or death. We allege it was an unnecessary expense given most customers may have already held life-insurance policies that offered them this security and coverage, and/or because Aussie’s policy only provided cover in a limited range of circumstances.”
Director of Woodsford Australia, Alex Hickson, commented: “these types of insurance were not in the interests of people who obtained them and Woodsford is committed to backing this action against Aussie Home Loans on behalf of those people who have lost money making payments towards these policies.
In addition to this class action, Woodsford is currently backing numerous other major class actions in the UK, Australia and Europe including those brought by claimants against AMP, CBA, Westpac and ANZ Bank.
Shine’s action will examine whether the brokers who sold these policies breached their duties to act in a customer’s best interests, and whether selling the insurance amounted to misleading or deceptive conduct.
"First homebuyers are often the first to fall victim to redundant policies like this and it’s really disappointing to see large businesses taking advantage of young couples and families just trying to make their way.
“This is money that was better kept in their pockets,”
“The great Australian dream of owning a home has enough challenges without the banks making that pathway even more expensive and complicated.” she said.
If you bought a Mortgage Protection Plan policy or My Protection Plan policy from Aussie Home Loans from 28 February 2018 onwards, register for the class action here.
