<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>More than 39,000 Budget Direct customers have allegedly been overcharged $3.3 million due to misleading advertisements, according to </span><a href="https://www.9news.com.au/national" rel="" target="_blank" title="Australia"><span>Australia</span></a><span>'s financial watchdog.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian Securities and Investments Commission (ASIC) has launched legal action in the federal </span><a href="https://www.9news.com.au/courts" rel="" target="_blank" title="court "><span>court</span></a><span> against the insurer behind Budget Direct's products - Auto and General Services.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC alleged that Auto and General Services advertised discounts up to 30 per cent for Budget Direct customers who bought a home, car or motorbike insurance policy online.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/hills-hoist-maker-strategic-review-expected-sale/6e7db2de-2fd6-4bd2-98c7-b28acfa14269" rel="" target="_blank" title=""><strong><span>Company behind Australian cultural icon on verge of being sold</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, more than 39,000 customers lost the discount after making changes to the policy, like updating their address or changing how often they make payments, during the first year between March 2020 and July 2024, it is alleged.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>They lost about $100 each and $3.3 million in total. Despite their discounts being removed, the customers allegedly continued to pay for the insurance.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC alleged the ads were misleading as the customers were not told they would lose their discounts if they made any changes.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/auto-and-general-services-almost-40000-budget-direct-customers-allegedly-overcharged-3-million/7af6a287-1e86-450c-b84f-4739bbb01a58" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The regulator alleged Auto and General Services became aware of the issue as early as 2016 but failed to fix it or notify customers for years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Australians should be able to take insurers at their word, especially when it comes to discounts that influence their decision to take up a policy and compare it to other products in the market," ASIC deputy chair Sarah Court said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We allege Budget Direct's conduct was misleading and deprived tens of thousands of Australians millions of dollars in savings they were promised."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/vb-turns-to-new-mid-strength-beer-as-australia-alcohol-habits-change/116eb7c4-71b7-4762-a861-58a263c80396" rel="" target="_blank" title=""><strong><span>VB pins hopes on mid-strength as Aussies drop classic beers</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Auto and General Services has paid over $3.8 million in remediation, including interest, to the 39,661 affected customers but ASIC will seek declarations and civil penalties from the court.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>An Auto and General Services spokesperson said it self-reported the incident to ASIC, apologised to and financially compensated the customers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The matter only arose when the customers made an amendment to their policy during the first year – primarily either by replacing their insured car or changing their insured address," the Auto and General Services spokesperson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In the past two years, Auto and General has invested more than $70 million in improvements to its systems and processes for managing its risk and compliance obligations and to prevent such an issue reoccurring.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In addition, since this issue commenced, there has been a significant program of transformation to improve our culture of accountability and compliance.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Auto and General is committed to continuing to provide affordable, comprehensive and dependable insurance solutions to our loyal customers."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>