Illustration of a mortgage.
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iStock / City Presse
Those who have taken on debt to buy real estate will ultimately not have an additional weapon to negotiate along the way.
Deputies and senators on Wednesday gave up allowing borrowers to change insurer "at any time" for their mortgage, rather than on the anniversary date of their contract.
The measure had however been voted by the National Assembly against the advice of the government.
Find a compromise
But parliamentarians met in a joint committee to try to find a compromise text on the so-called “Asap” bill, which brings together a series of administrative simplifications.
In the agreement found, the elected representatives of the two chambers returned to the version of the Senate concerning borrower insurance.
The due date for a contract termination is the contract anniversary date or “any other contract due date”.
But the termination will not be able to be done "at all times", as wished for deputies and the association UFC-Que Choisir.
The article further specifies that the insurer must inform the insured "every year" on "paper or durable medium" of his right of termination and its terms.
"Even if the Assembly wanted to go further, the initial article of the senators is a real plus for consumers", considers the rapporteur of the text Guillaume Kasbarian, LREM deputy.
Some six million individuals affected
The Minister for Industry, Agnès Pannier-Runacher, spoke out against the termination at any time.
According to her, "the banks will increase the cost of insurance, the perversity of this device could be that the most vulnerable pay more".
France has some 6 million individuals holding a mortgage, generating about 6 billion euros per year in insurance contributions, according to figures provided in the report of the commission.
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