Millions of Australians who believed they had missed the deadline to receive refunds for so-called junk insurance may still be able to pursue compensation, following new clarification around complaints rules.

The insurance products, often linked to home loans, car finance, personal loans and credit cards, were widely criticised after the Banking Royal Commission for being unsuitable, poorly explained or of little value to consumers.

The Australian Financial Complaints Authority (AFCA), which handles disputes between consumers and financial institutions, has been applying time-bar rules to policies sold before 2019. However, it has acknowledged privately that policies sold between 2010 and 2019 may still proceed, depending on how the insurance was financed.

This clarification could reopen the door for a significant number of claims. Between 2010 and 2019, almost seven million consumer credit insurance and add-on insurance policies were sold across Australia, affecting an estimated 4.7 million consumers.

AFCA serves as the primary external dispute resolution body for Australians whose complaints are not resolved by banks or insurers and is often the only alternative to legal action. Despite being designed as a free and accessible service, concerns have been raised that confusion around deadlines may have discouraged consumers from lodging claims.

Consumers who have held credit cards, personal loans, car finance agreements or mortgages, particularly before 2019, are now being encouraged to review their statements or seek advice to determine whether they may still be eligible to lodge a complaint.

In November 2024, a national media campaign prompted nearly 50,000 Australians to come forward ahead of what was widely understood to be a February 2025 deadline. That deadline was later extended to 30 June 2025 following discussions between the Australian Securities and Investments Commission (ASIC) and AFCA.

Claimo Co-CEO and admitted Australian lawyer Nikola Araouzou said uncertainty around time limits had contributed to widespread misunderstanding.

“This has created significant confusion for many Australians,” Araouzou said.

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

The issue comes amid ongoing cost-of-living pressures, with advocates warning that some consumers could be missing out on refunds that may provide meaningful financial relief.

While tens of thousands of Australians have already received compensation worth millions of dollars, many remain unaware they may have held these policies or that they could still be eligible to claim.

Barrister and solicitor Eu-Jin said he only became aware he had been paying for consumer credit insurance on a credit card shortly before the June 2025 deadline. He later received a refund of $7,289.

“Even as a lawyer of more than two decades, I wasn’t aware I may have been entitled to a refund,” he said.

“I only realised after the Law Institute of Victoria issued an alert about the AFCA deadline. I suspect many Australians would still have no idea they may have been affected.”

Victorian consumer Agis Vlahos also recovered $3,932 after identifying insurance attached to a personal loan.

“With the cost of living so high, it was reassuring to recover money that shouldn’t have been taken in the first place,” Vlahos said.

He added that many Australians may still be unaware of potential entitlements.

“A lot of people simply don’t realise they may have been paying for insurance they never needed,” he said.

Consumer advocacy firm Claimo said it continues to hear from people who believe it is too late to lodge complaints, raising concerns that valid claims may be abandoned prematurely.

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

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