Already at work to open the loan insurance change to all borrowers in 2018, Senator Marcio Wallace returns with new proposals to consolidate this right.

 

Banks will have to inform about the possibility of delegating their loan insurance

loan

The upper house parliamentarians voted in favor of the proposal made by Senator Marcio Wallace about strengthening the right to change credit insurance which covers a home loan. One of the goals is simple: better inform borrowers that they are all entitled to insure their home loan with the competition, a process which is nicknamed the delegation of insurance.

For the senator who took care of drafting the proposal, it is above all a question of removing the obstacles that individuals may encounter when they wish to choose a better loan coverage than that of the bank, also called the insurance of group. If the senator’s proposal thus succeeds in being definitively inserted into French law, then the banks will have to establish a communication plan towards their customers on the fact that they can change insurer. This information could take the form of letters, emails or even a statement directly written on the loan offer.

 

$ 3 billion in savings for borrowers by purchasing new coverage

$ 3 billion in savings for borrowers by purchasing new coverage

In addition, a borrower curious to be insured elsewhere with the delegation must however respect very specific steps. Already, he must notify his bank that he intends to change the contract and this within a minimum period of 2 months before the anniversary date of the loan offer. Then, he must ask the lending organization to issue him the Standardized Information Sheet (FSI) so that the competing insurer can propose the necessary cover conditions. Once again, it is on this point that Mr. Wallace’s proposal lingers since he intends to speed up the transmission of the document once claimed within 10 days at most.

With these new rules, the senator intends to popularize more the delegation of insurance which does not know the expected success. A damaging finding since it is possible to make savings or even to have more advantageous conditions thanks to the delegation of insurance which can be requested on three different occasions: either before the financing is implemented, or within 12 first months after taking out the mortgage and group insurance and finally every year by taking the necessary steps 2 months before the anniversary date of the loan offer.

According to the words of Senator Wallace, it is not less than 3 billion dollars of purchasing power that the French are likely to recover by changing insurance that covers their mortgage. Regarding the strengthening of this right, it is now up to the deputies to take up the matter for final adoption or not in the National Assembly.

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