A Brisbane nurse recovered almost $9000 after reviewing old loans that had long been forgotten – and experts say millions of Australians could be in for a similar windfall.
Carl Fornilios never expected money back until friends encouraged him to check his old bank statements and loan documents.
“To have almost $9000 returned has been a huge help,” Fornilios said. Supplied
“I honestly had no idea this money was there,” he told nine.com.au.
Industry estimates reveal up to one in three Australian households may have held consumer credit insurance or similar add-on products before lenders pulled them from the market in 2019 following the banking royal commission.
Fornilios was one of them. After looking at his previous accounts through claims management company Claimo, he secured refunds for two old novated leases and a credit card.
“You hear about refunds and compensation stories, but you never think you could be one of the people affected. To have almost $9000 returned has been a huge help,” he said.
Fornilios used the money to pay off an old debt and help his wife with her expenses.
“I never expected I’d be owed that much money from unused insurance … I’ve told my workmates about my experience, and I hope they’ve checked whether they’re eligible too.”
Claimo managing director Nathan Mortlock said many people only discover they are owed money years after taking out a loan. Supplied
Finder money expert Richard Whitten said advocates have long dubbed consumer credit insurance as “junk insurance” due to its dismal return for customers.
He pointed to a landmark review from the Australian Securities and Investments Commission (ASIC), which found that customers who made successful claims typically received just 11 to 19 cents back for every dollar paid in premiums.
“This means it simply isn’t worth the money, even for those who take advantage of it,” Whitten said.
Banks scrapped credit card insurance following an ASIC crackdown on junk insurance products. Ben Rushton/Fairfax Media
Whitten said people reviewing old finance products should search loan contracts and product disclosure statements for terms including “credit insurance” or “loan protection insurance”.
Asked how far back people could go, he said it would depend on the individual insurance contract and its terms.
Claimo managing director Nathan Mortlock said many people only discover they are owed money years after taking out a loan.
“Carl is exactly the type of Australian we hear from every day – someone who worked hard, paid their bills and had no idea they may have been paying for insurance they didn’t need or couldn’t use,” Mortlock said.
“The biggest lesson is don’t assume you aren’t entitled to anything just because you don’t remember having the insurance.”
The Australian Financial Complaints Authority (AFCA) said Australians lodged a record 119,949 complaints in 2025-26 – marking the third consecutive year complaints have topped 100,000.
Banking and finance remained the authority’s busiest area, with personal transaction accounts, motor vehicle insurance, and credit cards the most complained about.