What is Lemoine’s law?

Promulgated on February 28 and entered into force on June 1, 2022, the Lemoine law (named after the deputy Patricia Lemoine who brought the text) is intended “for a fairer, simpler and more transparent access to the insurance market borrower “.

The Lemoine law is a set of measures that have been put in place to help borrowers in France. One of the main provisions of the law is that it allows borrowers to terminate their loan insurance at any time.

Here we review the few strong measures of the text.

What is Borrower Insurance?

First, let’s take a quick look at what borrower insurance is.

This type of insurance protects lenders and borrowers from “life accidents” that would prevent the borrower from being able to repay the installments (illness, job loss, etc.). Borrower insurance therefore brings a certain peace of mind to lenders and although it is not a legal obligation, it is very often required by the banking institutions that will grant you a mortgage.

Borrowers, for reasons of convenience, very regularly subscribe to the borrower insurance offered by the banking institution itself. It is in this area in particular that the Lemoine Act makes life easier for the borrower.

Easy termination

The Lemoine law allows the borrower to be able to terminate, at any time and free of charge, his borrower insurance contract.

This means that if you change your mind about the borrower’s insurance or if you find a better offer elsewhere, you can cancel the contract without having to pay a penalty.

This measure of the law was designed to prevent consumers from being tied into contracts they no longer want or need.

Professionals like Wedou are able to assist you in choosing the best insurance based on your debt situation.

Elimination of the health questionnaire

The Lemoine law also allows, under conditions, the abolition of the health questionnaire for home loans up to an amount of 200,000 euros per policyholder (400,000 euros for two borrowers insured in equal shares) maturing before the 60th anniversary of the borrower.

This measure of the law was put in place to help people who may find it difficult to get a loan due to their health condition. By eliminating the health questionnaire, the Lemoine Act will allow more people to get a loan.

A reduced forgetting period

The notion of “right to be forgotten” or “forgetfulness period” refers to the non-obligation for a borrower to declare having suffered from cancer after a certain period.

For example, if a person who has been diagnosed with cancer applies for a loan, this person is no longer required to disclose their history of having cancer (or Hepatitis C) if the patient occurred more than five years ago (the period was 10 years before the law) and the actor has been in remission throughout this period. This measure ensures that people who have had cancer are not discriminated against when trying to access financial services.

As a result, the Lemoine law offers important protections to borrowers, making it an essential part of French consumer law.

The Lemoine Act is a big step forward in ensuring that everyone has access to fair and equitable lending practices.

While the law has been welcomed by consumer advocates, some critics say it gives borrowers too much power and could lead to higher long-term borrowing costs.

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