Vacation Financing and Compulsory Insurance

Almost always before giving to the client a signed agreement the bank includes in it an item obliging the client to purchase the life and health insurance policy together with tour. The condition is usually arranged as an additional option, but happens that purchase is just imposed though in the law there is no anything said about compulsory insurance in case of loan granting. Insurance in case credit obtaining, is unprofitable first of all to the client, as he receives the amount less than he ordered, but he should repay it all plus charged interest therefore it is possible to refuse such agreement.

The opinion of lawyers is that imposing life and health insurance policy purchase by bank is an enslaving condition. They don’t understand why voluntary insurance became compulsory and why the client should lose his money. After all, borrowed money is issued with deducted cost of insurance and connection of service. Thus, the client is obliged to repay total amount with payment of commission rate for use of the credit.

Lawyers are sure that money for such insurance can be repaid via court. And the court will be on the side of the suitor as banks obviously go too far and violate the law. The law “About Protection of Consumer Rights” is on the side of the client and which short treatment following, impairment of consumer rights is recognized not legal, all losses are subjected to compensation in full”. According to this law the court will be obliged to cancel the insurance contract and to repay money to the suitor.

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