A new credit insurance code is designed to stop New Zealanders taking out policies that will not pay out when they need them, that are overpriced or that they have been forced to buy.
The Financial Services Federation (FSF) is to launch a Responsible Credit-Related Insurance Code next week. It covers policies that are sold alongside credit products such as loans and hire-purchase agreements.
It is designed to pay out when someone cannot work due to illness, accident or redundancy but needs to keep paying back the loan.
รข€‹FSF executive director Lyn McMorran said her organisation was trying to raise awareness of the value of responsibly sold credit insurance, and how it should work for consumers. She said fewer people had it than needed it.
from
http://www.stuff.co.nz/business/94110457/Outrageous-costs-and-mis-sold-loan-insurance-to-be-weeded-out-by-new-code
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