IN BRIEF
|
The subject of theborrower insurance is often a source of tension between borrowers and the banks. Despite laws such as Lemoine law, which promotes insurance delegation, many banks persist in imposing their own group insurance, making it difficult to compete in the market. Refusals to cancel or modify insurance further complicate the situation for borrowers, who often wish to change contracts to obtain better rates or guarantees. This lack of collaboration and transparency on the part of financial institutions raises questions about their commitment to their customers.
The world ofborrower insurance can sometimes seem like a real maze, especially when it comes to collaboration between banks and borrowers. Indeed, despite the implementation of laws intended to provide more transparency and of choice for policyholders, it is clear that banking establishments continue to play by their own rules. This article aims to explore these shortcomings and enlighten borrowers on their rights as well as the options available to them.
The issues of borrower insurance
L’borrower insurance is often considered a sine qua non condition for obtaining a real estate loan. Basically, banks want to ensure that if the borrower finds themselves in a difficult situation, such as death or disability, the loan will be repaid. But who really benefits from this obligation? Borrowers, in the majority of cases, must be satisfied with the offers of their bank, which generally offers a group insurance, often less advantageous than what they could find on the market. And there the problems begin!
The Lemoine law: a step forward?
The Lemoine law, which recently came into force, aims to give more freedoms to borrowers. Gone are the days when the bank could impose its insurance without any possible discussion! Now you can choose a insurance delegation, that is to say opting for insurance offered by another organization. But be careful, the banks continue to play their cards. Although legally required to respect this freedom, some continue to make it more difficult for borrowers, making the process less smooth than it should be.
Unjustified refusals
One of the major problems remains the refusal to terminate or delegate insurance. Borrowers, often poorly informed, accept refusals from their bank without flinching. However, these refusals are sometimes unfounded and result more from a desire to maintain the profits linked to group insurance. It is essential to know how to react to a refusal. Borrowers can assert their rights and request explanations. They also have the right to provide an insurance contract which meets the same guarantees as that of the bank.
Hidden clauses
Another point to watch out for is the hidden clauses in insurance contracts. Some banks add restrictive conditions which further complicate the possibilities of changing insurance. It’s crucial to read the fine print to avoid pitfalls. Indeed, if a bank cannot modify the terms of the credit due to a change of insurance, it can use other techniques to make the transfer more difficult.
Bank obligations
Banks have obligations to their customers. When a borrower wishes to change insurance, the bank is not supposed to make the approval of his request subject to an appointment at an agency. This is part of the remote service obligations, which facilitate account management. Yet many banks continue to request unnecessary travel, delaying the process.
The advantages of alternative insurance
It is obvious that the alternative insurance can often offer better rates and more extensive warranties. Market participants, other than banks, are generally able to provide fairer and more competitive offers. However, it is important to carefully compare the products offered. The Murcef law specifies that banks must clearly inform you about the conditions of their product. But what about practice?
Incomplete knowledge of rights
Most borrowers do not know their rights in depth. Whether on the termination or the insurance delegation, borrowers often find themselves at the mercy of banks and their communication. Distrust is warranted when we realize that most of the documents provided by banks are written in such a way as not to really explain the options to policyholders.
Possible recourses
Faced with this opacity, it is imperative to know that various remedies are possible. Whether with a consumer association or via information platforms such asABEIS, borrowers have useful advice on how to complete a loan application successfully. change of insurance or contest a decision of their bank.
Practices to avoid when subscribing
When taking out your borrower insurance, it is crucial to remain vigilant and avoid certain practices that could harm you. For example, not rushing to the first offer from the bank can allow you to save by choosing insurance more suited to your needs. Additionally, find out about the risks covered by your insurance, particularly those linked to illness and accident, so as not to find yourself without security in the event of a problem.
Understand the conditions of group insurance
THE group insurance offered by banks have their own merits, but they are not necessarily suitable for all borrowers. It is essential to identify the benefits and the disadvantages such contracts. Often, this type of insurance offers negotiated rates by age group, which may seem advantageous. However, this vision does not take into account specific needs which may require another approach.
Legislation in favor of borrowers
It is essential to remember that legislation, such as the Lemoine law, aims to ensure that each borrower can change insurance without suffering penalties. Banks are required to respect these laws, and borrowers must use them as leverage to assert their rights. Platforms like Pretto offer practical advice to better manage these changes.
Navigating the twists and turns of insurance
Finally, the last suggestion that we can make is to see more clearly in this complex sector. The different insurance offers, from guarantees to privileges, including limitations, deserve particular attention. Borrowers can navigate with peace of mind by learning about their own situation and calmly comparing available options.
In conclusion, theborrower insurance is a subject that requires not only special attention but also good preparation. Although bank practices can sometimes seem opaque, there are after all many alternatives. So, take your time, inform yourself and do not hesitate to assert your rights if necessary.
