Shine Lawyers investigates class action against Aussie Home Loans

A law firm is investigating launching a class action after it alleged ordinary Australians were “exploited” in a situation that is already stressful and complex.

Thousands of Aussies may have been “exploited” by a major home loan provider selling them a “worthless” product.

Shine Lawyers has announced it’s investigating a possible class action on behalf of tens of thousands of homeowners who were sold a policy by Aussie Home Loans, which they claim was ultimately of limited or low value.

The mortgage protection policy was touted as a kind of life insurance which would help cover home loan repayments in the event of illness, loss of employment or death, according to the law firm.

Shine alleged it was unnecessary given many customers may have already had similar and better coverage or that there were other policies available which were cheaper and provided substantially better cover.

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Shine Lawyers are alleging the product was basically ‘worthless’. Picture: Getty Images

Aussie Home Loans and Lendi Logo merged in 2021. Picture: Supplied

Its investigation will examine whether the brokers breached a duty of care to act in their client’s best interest and if the sale of the product was misleading or deceptive, or amounted to unconscionable conduct.

Rebecca Jancauskas, Shine’s class actions practice leader, said it was often first homebuyers who were forced to hand over an extra thousand dollars or more a year to pay for the

policies.

“It’s hard enough to get a foot on the property ladder, and if brokers are selling unnecessary insurance it makes it even harder,” she said.

“Buying a home is a complex and stressful process. We’re investigating whether Aussie

Home Loans exploited its clients by selling them a policy that was essentially worthless.”

Rebecca Jancauskas, Shine’s class actions practice leader. Picture: Joel Carrett/AAP

A spokesperson from Aussie said the company was aware of reports regarding a law firm reviewing aspects of an insurance product offered by third party insurers through Aussie.

“Aussie offers thousands of mortgage and insurance products through it’s approved panel, but does not issue insurance itself,” they said.

“Aussie has not received any correspondence relating to these claims and therefore are unable to provide further comment.”

Shine is currently looking to speak with anybody who bought a mortgage protection policy

from Aussie Home Loans from September 2016 onwards.