The insurance cabal: how to get insurance on the loan
How to put in place the Bank imposed insurance on the loan.
In 2017 banks in Russia issued loans in the amount of 5.68 trillion rubles. And the Russians began to take more and more. Thus, the volume of lending in our country at the end of last year increased by 37 percent. And, according to analysts, demand for loan products in Russia will continue to grow. The lion’s share of all loans, of course, represent a small credit card loans and cash loans. The second place on volume of lending is a mortgage Bank products. But not far behind cards and mortgages and auto loans, which are back in fashion after the stabilization of the financial situation in the economy.
Against the background of growth of sales of new cars Russians are again not afraid to buy a new car with borrowed money. So, according to statistics of the joint credit Bureau (OKB), at the end of last year, banks issued 25 percent more loans than in the crisis of 2016 (by number of loans). If you take the sum, the increase in the volume of car loans in 2017 amounted to 36 percent (the volume of loans under the loan amounted to 333,3 billion).
So, as you can see, the Russians again loved and admired loan products. Especially in the last months of this year, when the Russian currency started to float freely together with the Turkish Lira and other currencies. Of course, people fear that due to the strengthening of the dollar fall will again begin to grow like mushrooms after the rain, the price tags on new cars, ran to the showrooms. Unfortunately, most of the population has no financial opportunities to buy new cars.
So people are forced to resort to credit banking products. Do not stop the citizens of Russia or high predatory interest rates on loans, or mandatory property insurance (super expensive hull insurance policy), or even imposed on the different side of banking and insurance products, which in the end make a standard loan amount in the indecent.
But, of course, amid rumors that Russia is again waiting for the nosedive of the ruble in the coming years, many motorists believe that their mortgage payments will eventually depreciate. That may be so. But the devil, as they say, is hiding in the details. And if the amount of a loan for a car today is more or less clear (CB has long been banned banks to use stealth in order to hide the true interest rate and to cheat customers with various hidden fees, etc.), imposed on banks insurance on loans go whole legend.
The fact that for a long time when issuing loans, banks insolently impose customers a variety of insurance products that you can either approve the loan or give money at an extortionate rate of interest.
The worst thing is that many banks when issuing loans almost lenders impose misleading, concealing imposed in the process of disbursement of various insurance products, for which, by the way, the customers have to pay money.
Here is a typical example of how a well-known Bank, one of the TOP 50 banks of Russia, imposes on insurance products.
So imagine a situation: you contacted one of the banks in order to obtain money to purchase the car (not the loan). After tedious procedures, where you are willing to take almost the tests, you have reported good news – the loan approved. You after a hard quest for submitting a loan application to the Bank begin to rejoice and already imagine yourself driving a brand new car. Because right now you create your own story – you were given money to purchase dream car. But do not rush to sound the trumpets and dance lezginka.
At this very moment, until your mind is put to sleep rainbow paintings, well-trained Bank Manager give you an interesting paper, in which you casually ask to substitute the signature. Leaving his autograph on many a pile of papers in the Bank, you are actually not only sign the loan agreement, but will consent to the acquisition of insurance policy which will run for the whole loan term. Moreover, this policy is not free. Moreover, you will be shocked of its value, as insurance companies count the cost of such insurance on the basis of a certain percentage of the loan amount.
Then everything classically. Signed (without reading in detail with each point and comma) a lot of paperwork that you gave the Bank for the signature, you start to wait for the coveted amount in the account, which the Bank you need to enroll in the loan agreement. And finally, you receive an SMS informing that the money received on account. Joy has no limit. But what is it? Almost immediately you will receive another message – to write off from the credit account of the N-th sum. You’re in shock. How so? Begin to call the Bank with the requirement to understand. And it is here that you will learn all the charm of the banking business in our country in the sphere of crediting of the population.
It turns out that signing the loan papers, you agreed to arrange a financial insurance on the loan. That is, thus, the Bank insures its risks allegedly associated with the loan. For example, under such insurance, the Bank must obtain insurance indemnity, if you for some reason can not pay the loan. On the one hand, everything is logical and probably correct. But don’t forget that Russia is an amazing country, which has long been surpassed Ostap Bender with its 1000 ways of obtaining money from unsuspecting citizens.
Most interesting is that by signing such documents on insurance, you agreed to the insurance service that immediately upon receipt of funds on the credit card account will be charged in favor of the insurance company. So don’t be surprised that your account will from the abyss of a large amount that will go to the address of insurance organizations established by the Bank.
Yes, as a rule, many banks are specifically set up their own insurance company. And in order to further make money on loans. Everything is logical: the more loans, the more imposed on insurance policies sold. If you add up the profit on credit products and imposed on the insurance, you get a very decent amount which is comparable to the profit on loans 10-15 years ago when banks did not hesitate to give out loans with huge hidden charges and obscenely high interest rates.
But today, protects the rights of borrowers is the Central Bank, which can revoke the license of the Bank – what’s in store for bread to go. Here are the banks and figured out how to bring back those legendary superdohody on loans. Agree, interesting move is to disguise the hidden interest and commissions of insurance products.
Naturally, such imposed on services already suffered a lot of Russian citizens. But I am glad that people in our country don’t want to put up with such arrogance of the banks and not sit still. Someone applied to Rospotrebnadzor, demanding to punish the Bank for fraud and the imposition of unnecessary (optional services). Someone complains to the Central Bank, pointing to the violation of the banking act. But most just go to court. And, admittedly, the bulk of the borrowers obtained to abandon the imposed insurance and, accordingly, to return the money debited from the credit account for imposed financial insurance product.
But how much the cost of such insurance to Bank customers? In each insurance company, the Bank, its interest rates for insurance products. For example, an insurance company created by the VTB Bank, the financial insurance could cost the borrower at 10-12 percent of the loan amount.
But this is not the limit. There are on the market and more extortionate rates reaching 25 percent. You still want to take out a loan? Calculate how much it will cost imposed on Bank insurance, if you, for example, will take on the car is 700 000 rubles. In this case, if you put the signature under the insurance agreement or joining collective insurance contract, you essentially agree that your credit account will immediately write off 80 000. What if the loan is more? The school course of elementary mathematics will return your mind to the ground and take a sober look for a car loan.
Fortunately, starting in 2016, each of the borrower Bank has an opportunity to legally refuse imposed insurance products on loans. Initially, according to the order of the CBR, the borrower had the right to refuse financial insurance of their liability to the Bank within five days from the moment of signing of the loan agreement. Later, this term was increased to 14 days.
Unfortunately, if you contact your Bank to waive the Bank imposed insurance after 14 days, you will be denied. If before you have a chance to return charged by the Bank in favor of the insurance company money. But not so simple in this case.
First, banks are still trying to deny customers refunds paid in the financial insurance product, inventing various excuses. No, it certainly is not widespread, nevertheless, is the place to be.
In this case, in order to get the money back for the insurance on the loan, you will have to contact the CPS, the Prosecutor, the Central Bank or is it better just to go straight to court. And what pleases me, in 99 percent of cases, the courts side with the borrowers. Unless you are signed in the Bank at the time of processing the loan agreement collective insurance, in which you just attached to the previously existing collective insurance.
This kind of know-how banking lawyers who figured out how to circumvent the order of the Central Bank, obliging the insurance company to return the money for insurance imposed by the banks under loan agreements.
In this case, the Bank attaches borrower to its insurance contract concluded by the Bank with its own insurance company. Formal banks do not sign directly with clients direct insurance contract.
By the way, many banks after the tightening of the control of the Central Bank over the issuance of credit products in General began to practice the rejection of the loans if the borrower refuses to join the collective credit insurance contract. But this is a violation of the law, for which the Bank may face serious sanctions from the regulator.
Unfortunately, most banks today in issuing loans force customers to sign the Treaty of accession to the collective security framework of the agreement with its insurance subsidiaries. This, as we have said, allows a legal way to circumvent the requirement of the Central Bank.
Although, according to the Decision of the Supreme court (case number 49-КГ17-24) of 31 October 2017, sun recognized that the order of the Central Bank of the inadmissibility of the imposition under the credit agreement third-party services or products but also about the ability of borrowers to return the money for these services applies in cases of collective insurance contract. Therefore, according to the same decree, all banks are obliged to return the money for the purchased the policy if the borrower refuses the insurance contract within the stipulated period, the Central Bank.
The worst part is, that the Decision of the Supreme court, the banks simply ignore and often refuse to borrowers in return for cash furnished an insurance policy upon signing the loan agreement. In the end, borrowers are forced to seek the truth in the courts. Moreover, these trials artificially delayed banks, as well as challenged in the higher courts. Unfortunately, in our country there is no case law, and therefore each court makes a decision on the matter based on their submissions. As a result, the borrowers are not easy to get your money back. As an example – a case that reached the sun (link above). Can you imagine what it was like for the borrower to seek the truth?
So if you don’t want to knock about the Russian courts, that if the Bank refused to return the money paid for insurance, please contact the CPS with a complaint. Recently, the organization successfully cope with such abuses by banks and their insurance companies.
Here is a sample complaint for filing in the Federal service:
Download the complaint in Word format: | obrazec-zhaloby-v-rospotrebnadzor-na-bank.doc [36 Kb] (downloads: 0) |
However, please note that in the CPS or the court, you can apply after receiving a written denial of a refund for insurance on the loan. If you deny the words (which is not uncommon), your task is to force the Bank to refuse in writing. To do this, write requests to the Bank, especially if you do not give failure. In your letter, the Bank is obliged to answer. Of course, your appeal to the Bank can simply not accept. In this case, I suggest you send a certified letter through the mail. You can also assure the letter notarized.
Is it possible just to refuse insurance at the time of conclusion of the loan agreement?
Theoretically, of course, possible. The law is on your side. But there are many “but”. As we have said, often, banks try to refuse customers in providing loans, if they are not willing to insure their financial responsibility. Some banks are more loyal, but in this case, the increase rate of the loan to the heavens.
How to meet the deadline for the waiver insurance?
Recall that the first, according to the order of Bank, borrowers only had 5 days to cancel the policy. Today, this deadline has been extended to 14 days. But do not hurry to rejoice. In this period, many borrowers do not fit. The fact that the banks, under various pretexts, delaying the receipt of applications from borrowers regarding the refusal of insurance in the hope that customers will not fit into the set CB time.
As we have said, you can’t just make a statement and even lose it, especially if you made an application to the Bank in a single copy or have not asked the Bank to put the date of acceptance of the application for its copy.
But then how to prove that you actually did meet the Central Bank deadline? It’s simple. Record the process of filing an application for refund, deducted from the loan account under the contract of insurance. Your task is to attach your video to the shooting date. For example, before you approach the Bank employee to apply to ask anyone at the Bank the current date. Can also remove scoreboard with foreign exchange rates, where usually the current date. That is your task – to collect as much evidence that you went to the Bank to apply for waiver of insurance within the statutory deadline. In this case, it will be easier to prove in court your rights. Especially if the Bank in the end and will not return you the money.
How the CPS can force the Bank to return the money for the insurance?
If you refer the complaint in Rospotrebnadzor with the request to oblige the Bank to return the money for financial insurance, then the Agency according to the legislation will inspect and, in case of detection of violations of the law and order of the Central Bank, the Bank will give out the instruction about elimination of violations of the law. It is possible, the Bank also will be fined.
But this does not mean that you will return the money to the credit account. In practice, banks are very often ignore the requirements of the CPS. But it does not matter. With the decision of Rospotrebnadzor, if you do not get the money, feel free to go to court, which in 99% of cases will make a decision in your favor.
By the way, in court not only will you be able to achieve a full refund of the amount of insurance, but also to moral damages. The court also may fine the Bank for a considerable sum.
However, great moral compensation don’t count. Max will receive 5,000 rubles. With this in our courts all bad. We don’t live in the US, where such compensation can amount to hundreds of millions of dollars.