Without man and horse was called in October 2009 a letter published on the excessive commissions, the consultants in charge of loans to so-called credit and housing protectors. This examination of the Financial Markets Authority was in particular to purchase insurance. The charged commissions of up to 86% were not in relation to the performance. Customers did not realize that the relationships were so skewed.
Polis purchase versus paying insurance premiums.
A single premium policy is nothing more than insurance where the premium is paid by a single payment, called the purchase price. By paying insurance premium goes to the insurance premium which must be paid periodically. This may monthly, quarterly or yearly. When the offending single premium, where the.
AFM study has done is specific to the disability, death and unemployment be minimized whose purchase price is financed partly by a mortgage or consumer credit.
Single premiums in exchange for a low interest rate.
Some lenders charge as opposed to the costly storage of a single premium a few tenths percent on the interest charged. The single premium policies are often the lender to “sell” the story that would cause the interest rates can remain low. Credit Protection Insurance and Shelter Insurance.
Previously mentioned disability, death and unemployment insurance nature are known in the market under the name credit protection insurance (consumer credit) insurance and living costs (mortgage loan). It is relatively simple insurance. In the Netherlands six major insurers / compilers of this non-complex asset purchase insurance. These are likely to:
1. Gema Advisory Group (part of DSB Beheer, known for the Credit Protector, which DSB Bank, Afab Cash Advance Service and Discount Hollandsche Bank – short HDV Bank – were advised).
2. Genworth Financial, formerly part of GE Financial Services.
3. Cassidy Davis Lloyd’s, whose name by January 1, 2010 will be Jubilee Group.
5. SNS Reaal.
6. Quantum Leben (Liechtenstein).
Usury Provisions for credit protectors.
The results of the AFM study, in a letter dated June 8, 2009, the Ministry of Finance announced. The study covered the period 2006-2008. It showed that all insurers of credit protectors (for consumer credit) offered in 2008 fees between 25% and 86% paid to consultants / intermediaries. Three of the six insurers gave credit to protectors: Gema, Genworth and Cassidy Davis. Most consultants / brokers, however, won 80% of the purchase price and commission paid.
High commission on housing protectors.
By housing protectors (with mortgage) were on the commission to 71%, while the average fee was around 42%. The AFM, however, that average premiums recorded in housing defenders much faster than credit protectors, because the higher insured value of the loan. Remarkably, Cardif, one of the largest suppliers, on February 20, 2009 after a private study said that up to 35% of the purchase price if commission is paid. The study examined a sample of over 100 mortgage consultants.
Final Word.
After the collapse of the DSB Bank dived on the media phenomenon single premium policies. Board of DSB Bank gave in the aftermath of the bank that on average 51% of funds were captured. The ratio of mortgages and consumer credit in the loan portfolio of DSB Bank (80-20%) would correspond to the findings of the AFM. Also Afab Financial Services Holding NV as a result of these predatory practices come under fire lie. The AFM wants the commission to purchase insurance now clear to the consumer identified. It is better now that the consumer loan that is not associated with a single premium policy accepts more. It is because for many people the beginning of all misery launched. The consultant / broker is long and wide with the money by. In addition, the AFM frank with regard to the loan sharks. On late in the day the consumer is not waiting.
