Courts are set to rule on a $80 million lawsuit against the National Warranty Company (NWC) after offering “worthless” warranties.
NWC, which homes an office in Traralgon, sold warranties with used cars and trucks, with the fine print saying NWC will “consider” a claim, rather than actually offering any kind of compensation or repairs.
Whether they actually paid anything was entirely at NWC’s discretion.
The fine print on these products is said to have flown under the radar for years.
The company is also refunding $4.9 million to thousands of customers, after customers were overcharged for cover by sales staff chasing more commission.
NWC will be refunding over 6,000 customers, after they let staff charge their own prices for a repair warranty.
Statistics show Australians are now heading online for free quotes, and getting cheaper deals for home and contents, vehicle and other insurances, using companies such as Naritas Finance, rather than the more mainstream companies.