Cambiar de seguro de préstamo: ¿Qué dice la ley?

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The law provides the right for bank clients to cancel their loan insurance annually. The initial measure, known as the “Lagarde Law,” prohibited lenders from imposing their loan insurance on borrowers. Then, the 2017 Bourquin amendment allowed for annual cancellation of the insurance contract on its anniversary date, with a two-month notice.

However, despite these provisions, banks still dominate the mortgage insurance market, holding almost 88% of the 6.5 billion euro market. The possibility of significant savings through changing insurers, ranging from 6550€ to 15100€ depending on the loan duration, has been highlighted. A legislative battle ensued around the “ASAP” law, aimed at streamlining public services.

An amendment to this law was adopted to allow cancellation of insurance “at any time,” intending to lower insurance prices and increase competition. However, in a second reading, this provision was rejected, as it was feared it could lead to increased loan refusals and higher interest rates. Instead, the law reinforced existing measures, such as obliging lenders to inform clients of their annual cancellation rights, under threat of a fine.

Ten years after the Lagarde Law, the “ASAP” project aims to reform the insurance market without being considered a separate legislative provision. Despite the setback in the current law, there are plans to propose a new bill in 2021 for a more comprehensive reform, providing more options for choosing mortgage insurance without being tied to unrelated legislative issues.

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