The Australian Securities and Investments Commission (ASIC) has called for improvements in the way consumer credit insurance is sold.

In a survey of 15 authorised deposit-taking institutions, the regulator found consumers were being sold products without their knowledge or consent and potentially misleading representations were being made during the sales process.

ASIC also found pressure tactics and harassment were being used to push consumers into buying credit insurance.

Telephone sales of credit insurance were also criticised by ASIC, which found three institutions didn’t use scripts when talking to consumers.

“We note where staff are not required to follow a script, there may be an increased risk that they will provide information or advice that is unauthorised, incomplete, inaccurate or misleading,” it said in the report.

“We also found that some scripts used by institutions lacked sufficient structure to prevent staff from improvising and providing additional information not covered in the scripts.”

The review of credit insurance was triggered by ASIC action against three institutions that had mis-sold products.

ASIC says it wants evidence of consent from the consumer that they have agreed to buy the product. It also recommends disclosure of interest payments, separate quotes, disclosure of the premium structure, ongoing information on products and training programs for staff on a regular basis.

The regulator says it will review claims-handing and usurer practices for credit insurance, and notes the Financial Services Council is committed to producing guidance for life insurers that offer these products.