If or when you decide to take out a loan of any sort, you will most likely also be offered an insurance policy or several of them. These may be presented as something necessary, as they’re meant to protect you and cover your loan expenses in case of unforeseen circumstances. However, many people don’t know precisely how insurance works, and they don’t recognize insurance policies that hold no true value. When this happens, you must be aware of your rights and your options. If you’re wondering what CCI insurance is, whether and how you can get a refund for it and why you should find an expert to talk to about this problem, here are the key answers you seek.
What is CCI?
Consumer credit is a type of personal credit that individuals can apply for, and it’s normally used to buy various goods or pay for different services. Usually, people associate consumer credit with credit cards. However, the term also extends to loans that you can get for purchasing such goods as cars or electronic devices, but never investments, like a property or stocks and shares. When you apply for consumer credit, you’ll also be offered insurance that goes along with it, which is strictly an optional product. The purpose of consumer credit insurance, or CCI, is to be your safety net, which protects you from unexpected situations. For instance, if you lose your job, you’re unable to work due to illness, an accident or disability, or even if you pass away. When you can’t make your payments, your CCI should step in and cover you. Not all insurance policies are the same, and the benefits you get from a policy greatly depend on which one you choose. This means that the insurance may only cover a minimum payment amount, or it may cover your payments for a limited period.
Why is it problematic?
As logical and even great as CCI insurance may sound at first, there are some issues that you should know about. Namely, your bank may suggest that it’s necessary to invest in CCI, making you falsely believe that it presents protection against something that is bound to happen sooner or later. So, you end up paying for something that will cost a lot in the long run but doesn’t truly need or want it. Some clients aren’t even eligible for such a policy, yet they are completely unaware of that when they sign their contracts. Some banks even go as low as making the CCI papers part of the loan-related paperwork so that you sign it without knowing what you agree to. Other banks market this product as part of the loan, something that’s obligatory, or even try to sell the insurance to those who already have a similar insurance policy. Finally, it’s not uncommon for these policies to be sold to clients, without explaining to them all of the special exclusion clauses, which can turn out to be a huge problem. This is why CCI is often referred to as junk insurance.
What can you do about it?
When you realize that your CCI is junk insurance, there are still ways to claim a refund for the CCI that was mis-sold to you. Being that you probably aren’t an insurance expert, your best chance is to find a reliable CCI insurance refund specialist to provide you with guidance through the process. These services can become invaluable to you, as these professionals are resourceful and ready to go through all of your relevant documents and even file a request for any paperwork that they feel is missing. They will research to see if the CCI is useless to you, if it offers low value for the money you invest, if the claim ratios aren’t high enough or if you weren’t properly informed of all the aspects of the CCI, which may not be something you can do on your own. After that, they will let you know if you’re eligible for the refund claim, and in case you are, they’ll submit the request on your behalf. Aside from knowing what needs to be done to get a CCI refund and how to do it, the best ones will do their job without any risk to you, which means that they will only receive their fee if they succeed in getting your refund for you.
In case you have any doubts about your CCI, and you suspect that it doesn’t benefit you at all, it’s your right to question it. And if you don’t know how to approach this issue, ensure you find trustworthy professionals to do it for you.