A man who alleged he was mis-sold consumer credit insurance has lost his bid for a premium refund after the ombudsman found no evidence he was misled.

The complainant said he was told the CCI – bought in 2015 when he applied for a credit card through his bank – was important.

He cancelled the cover in April last year after hearing news reports about such add-on products and realising his other loans did not have similar insurance payments.  

The man argued he should be refunded all premiums paid, totalling $3612, and said supplier Latitude Finance had “taken advantage of his lack of knowledge, knowing he would agree to everything without fully understanding the unnecessary insurance they pushed on him”.  

The credit card company said the insurance was clearly presented as optional, and it noted the man bought the policy online rather than discussing it with its agents.  

The complainant argued that selecting the insurance was presented as a “continuation of the application”.

But in its dispute ruling, AFCA notes the policyholder could not remember much about the sale and his statements suggested he bought the policy through a representative rather than online.  

It says the online sale process “explains the optionality, some details of the policy, includes the [product disclosure statement] to view, and asks the complainant to select Yes or No to add the cover”.

AFCA says the customer would have had time to review the information, because it was an online purchase.  

“The information shows, on balance, the complainant chose to add the cover after being informed of the policy and its optionality,” the ombudsman said.

“The complainant says he was aware of the policy and does not say he thought it was compulsory.”  

See the ruling here.