a major step forward for borrowers.

The Lemoine law: a major step forward for borrowers.

The Lemoine law, put in place by the deputy Patricia Lemoine, aims to facilitate access to real estate credit. What are the changes implied by this new device?

1) The right of termination and reinforcement of information

The Lemoine law allows individuals who have taken out a mortgage to terminate their borrower insurance contract at any time, free of charge. This law came into force from June 1, 2022 for new contracts and from September 1, 2022 for old contracts.

In addition, for greater transparency, banks and insurance companies must now:

  • announce the cost of their borrower’s insurance for 8 years;
  • notify the expiry date of the contract;
  • and remind policyholders of their right to terminate their contract each year.

In the event of non-compliance with these obligations, refractory insurance companies and banking establishments will have to pay a fine of 15,000 euros.

2) The right to be forgotten and the evolution of the reference grid of the AERAS convention

The right to be forgotten allows borrowers who have been cured of cancer, for a fixed period, without relapse, not to mention it in their health questionnaire. If previously the period was 10 years after the end of the therapeutic protocol for former cancer patients, now it is 5 years and also concerns hepatitis C.

The AERAS agreement specifies two conditions for the right to be forgotten to apply:

  • The insurance contracts involved must cover consumer loans, business loans and home loans.
  • The maturity of insurance contracts occurs before the borrower is 71 years old.

3) The removal of the health questionnaire

The Lemoine law also prohibits soliciting information relating to the state of health of the insured.

This only concerns certain borrower insurance contracts, namely:

  • if the insured portion of the cumulative outstanding credit contracts does not exceed 200,000 euros per person,
  • Reimbursement of the mortgage must be scheduled before the insured is 60 years old.

This abolition will facilitate access to mortgages, without discrimination based on health.

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