Hello All
I am wondering if the French have similar legislation to the UK's regarding the misselling of Payment Protection Insurance? I find that nearly a third of our monthly payments of our pret immoblier is insurance - an absurdly large premium for such little cover. We were told we couldn't have the loan without it 3 years ago, since when I have now been able to work out that we've paid 3600euros so far on insurance alone and by the end of the term will have paid double that.
Any information gratefully received
Dear Guillaume
Thank you for your kind and considered reply - it is much appreciated. I will get French quotes for replacement insurance. UK based ones were between £16 and £23 per month - the bank charge us over 100 euros per month. Thanks again, Sarah
Dear Sarah,
I am not aware of such specific measures in France (the French financial services are not as strictly regulated as the ones in the UK).
Contracting an insurance policy in France is not compulsory but it would be difficult (if not impossible) to find a bank that would agree to lend without an insurance policy. Nevertheless, you are free to choose an insurance provider that is not the bank or one of the bank’s group representatives.
The contract should include the details of a customer service which is where you may wish to start.
You may also wish to cancel your insurance policy and replace it but the bank could then reject the new insurance policy as it may not provide equivalent guaranties. It is also important to note that the bank may request a fee to modify the conditions of the mortgage.
I hope this helps.