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Loan or Insurance: What is the Right to Forget? – Challenges

The right to be forgotten relates to the borrower’s insurance, insurance that allows lending institutions (banks, credit institutions) to protect themselves In case of disability or Subscriber deathHe is no longer able to pay his monthly installments. This is not mandatory under French law Borrower insurance However, financial institutions often ask to lend money. It is always required of people who want to get a mortgage.

What is the right to be forgotten?

To facilitate access to credit for people who have suffered from serious illnesses, French legislation, since 2016 and the implementation of the Arras Agreement (insurance and borrowing with increased health risks), provides for the right of supervision. This allows individuals or professionals not to disclose their old illnesses, after a certain period, so that they are not exposed to any increased rates (extra fees) and collateral exclusions from the borrower’s insurance.

The right to be forgotten can also prevent these people from seeing their applications for purely financing and simply rejected by credit institutions that are too wary about the idea of ​​lending money to people who were previously ill. This right relates to both insurance contracts associated with intended consumer loans (car loan, motorcycle, work, etc.), real estate loans, and professional loans for financing premises and / or equipment. Its duration must be scheduled before the subscriber reaches the age of 71.

What would the Right to be Forgotten Act of 2022 change?

Also known as the “More Equitable, Simple and Transparent Access to the Borrower’s Insurance Market” Act, the February 28, 2022 law set a five-year deadline for all affected persons to begin the right to be forgotten. Cancers or hepatitis C. This period starts from the end of the treatment protocol (which corresponds to the end of the active treatment phase). Previously, the right to be forgotten could only be invoked after ten years for people diagnosed with cancer after the age of 21.

The application of this text of the law since June 1, 2022, also provides for the cancellation of the medical questionnaire for mortgages of less than 200,000 euros (400,000 euros for a married couple) and which expire before the 60th anniversary of the borrower. These loans must also relate to the purchase of property for residential use or mixed residential/professional use. In general, this law is also supposed to pave the way for an extension of the right to be forgotten about diseases other than cancers and hepatitis C.

(by HREF Editorial Board)

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