And if borrowers had a period of one year to change borrower insurance after the subscription of their loan… Under the baton of Dumoe Hamon, this wish could well become reality from next year. The Minister of Consumer Affairs yesterday announced a proposal along these lines, a proposal that will be added to the consumer bill currently being debated by the members of parliament.
Report on loan insurance
This measure follows the presentation of the report on loan insurance issued by the General Inspectorate of Finance (IGF). There is, however, a difference with the original text: the report provided the borrower with a time limit, not one year, but only three months to renegotiate his insurance with another agency.
By extending this period to one year, the Department allows policyholders to look more serenely for a new loan guarantee. Provided, however, that the insurance coverages are identical to those of the contract signed with the bank. ” This is a small revolution, because it means that an individual who has purchased a mortgage and an associated borrower insurance while considering it too high, will now have a period of one year to change insurance and find cheaper, always obviously with equivalent guarantees, confirms Jona Lopez, spokesman for the broker Empruntis.com. This is a reasonable time that will undoubtedly change the situation.
The Lagarde Law bypassed
If the proposal of Dumoe Hamon is voted, it will be in addition to the Lagarde law introduced in 2010. It is this text that allows borrowers to negotiate – at the time of subscription of the mortgage – a borrower insurance with another financial institution. Except that in practice some institutions were able to circumvent the law, for example by raising the interest rate of customers wishing to take out credit insurance in another organization.
Result, three years after the introduction of the law, ” 7 out of 10 insurance are [ subscribed ] with the bank that establishes the bank loan, ” said Jona Lopez. A result to be compared with the figures of the UFC-Que Choisir. According to the consumer association, bank margins on insurance premiums represent 27% for “senior” borrowers and… 69% for first-time buyers. One understands it well, if the introduction of this delay of one year will make the happiness of the borrowers, it risks on the contrary to make grind of the teeth with the banks.