Letter: Metlife the issuer, not the seller, of CreditShield

Andrew Butler, principal counsel of MetLife Insurance Limited writes:

I refer to the article "MetLife and Citi rapped over cards cross sell" that appeared in The Sheet on Wednesday, 2 December 2009.

The article reported on an ASIC press release on 1 December which outlined the response of Citigroup to ASIC concerns about telephone sales of consumer credit insurance.

There are inaccuracies in your article that need to be corrected.

The article's headline that MetLife was "rapped over cards cross sell" is misleading.

The ASIC press release makes no mention of MetLife. MetLife is the issuer of CrossShield. MetLife provided ASIC with information regarding CrossShield product features in response to a routine, formal request.

At no time has MetLife been involved in any discussions with ASIC in relation to its reported concerns over the selling of CreditShield. MetLife has not received any further queries or requests for information or clarification from ASIC since January 2009.

It is therefore not correct to report that MetLife was "rapped" by ASIC over the cross selling of Citigroup customers.

In relation to the distribution of CreditShield to Citigroup's customers Citigroup is not MetLife's agent or authorised representative.

Citigroup undertakes the distribution of CreditShield to its customers under its own Australian Financial Services Licence.