The Hamon law applied to the personal loan

The law n ° 2014-344 of March 17, 2014 relating to the consumption was thought by the minister Benoît Hamon in the field of the credits of consumption.

This text aims to strengthen consumer rights and protection by creating a more binding framework for sellers.

The  Hamon law, the insured has the option to terminate his motor liability insurance or multi-risk home insurance at any time, once the first birthday has expired. Article L. 113-15-2 of the French Consumer Code confirms that the closure will be done without costs or penalties at the end of the twelfth month of the contract.

The borrower insurance

The Lagarde law is supposed to facilitate the practice of the delegation of insurance which makes it possible to subscribe the borrower insurance in a school other than that issuing the credit but in practice, the banks managed to keep the hand in this field.

With the Hamon law, customers can cancel their borrower insurance contract within twelve months of signing the loan offer as stipulated in Article L. 312-9 of the French Consumer Code. This time allows them time to find cheaper with the competition.

This measure allows for savings and lower prices while maintaining comfortable warranties. To benefit from it, it is necessary to send a registered mail with acknowledgment of receipt, a maximum of fifteen days before the annual expiry of the insurance contract.

Notice to be respected

The financial institution must give ten days’ notice as of the receipt of the new insurance contract before accepting the transfer of the file. It is however entitled to refuse if it does not present equivalent levels of guarantees.

Once the new offer has been issued, the credit institution must amend the loan agreement to calculate a new free- at-the-money rate at no charge. In addition, the Hamon law gives additional protection to the person buying a good or service on the Internet and specifies the conditions related to mass consumer disputes that allows aggrieved customers to assert their rights collectively, by requesting an association of Consumers approved by the State will then seize the Tribunal de Grande Instance on its behalf, as provided for in the new Article L. 423-1 of the Consumer Code.

Final cost to compare

Finally, in accordance with Article L. 311-8-1 of the French Consumer Code, if a customer is offered a revolving credit, the financial institution must make a personal loan or credit proposal to enable them to compare the final cost, regardless of the loan amount.

Sellers must also provide customers with information that clearly compares the operation, cost, depreciation and repayment terms of the two proposed credits. This provision really helps to improve the prevention of over-indebtedness.