Millions of people may still be eligible for refunds over “junk” add-on insurance, according to Claimo, which has criticised “significant confusion” caused by Australian Financial Complaints Authority deadlines.

The consumer refund specialist says the ombudsman has privately told it add-on disputes, particularly concerning policies sold between 2010 and 2019, may still proceed depending on how the insurance was financed.

In that time, more than 7 million “junk” products, including consumer credit insurance and other add-on policies, are believed to have been sold to about 4.7 million customers, Claimo says.

The deadline to lodge disputes about these products was set for June last year after being extended from February 2025 by the Australian Securities and Investments Commission and AFCA.

Claimo co-CEO Nikola Araouzou says uncertainty around dispute time limits has discouraged many people from trying to recover money they might be owed.

“People may have been told the deadline has passed, but most of these policies were financed and so the deadline shouldn’t apply,” she said. “The concern is that consumers [who] still have valid complaints are simply giving up before their cases are properly assessed.”

She says nearly 50,000 claims related to the products were made after a media campaign in November 2024 highlighted the February 2025 deadline.

Earlier this month, AFCA reported receiving 7137 insurance disputes related to consumer credit insurance last year – an 88% increase on 2024.

“In 2024, Australians rushed to act because they believed the window was closing,” Ms Araouzou said.

“The concern now is that many people may assume the window has already closed when their circumstances could still allow them to seek compensation.”