EU Court Rules: Offering Loan and Unrelated Insurance Simultaneously Not Unfair Practice
4 December 2024
Paris, France – The Court of Justice of the European Union (CJEU) has ruled that simultaneously offering a consumer a personal loan and an insurance product not linked to the loan does not constitute an aggressive or unfair commercial practice.
The ruling stemmed from a case involving a French consumer who was offered a personal loan and an insurance policy by the same financial institution. The consumer claimed that the simultaneous offer was an aggressive commercial practice because it created an impression of obligation and put undue pressure on the consumer to purchase the insurance policy.
However, the CJEU dismissed the consumer’s claims. The court found that the simultaneous offers did not prevent the consumer from exercising their right to choose and did not create an imbalance between the rights and obligations of the parties.
The court also noted that the consumer was not forced to take out the insurance policy and was free to decline the offer. Furthermore, the court found that the financial institution had provided clear and accurate information about the loan and insurance products, enabling the consumer to make an informed decision.
The CJEU’s ruling provides clarity for businesses offering financial products to consumers. It confirms that businesses can simultaneously offer loans and unrelated insurance products without violating consumer protection laws.
However, businesses must ensure that they provide clear and accurate information about the products and avoid creating an impression of obligation or undue pressure on consumers.
The French consumer protection authority, the Direction des Affaires Juridiques (DAJ), welcomed the CJEU’s ruling, stating that it aligns with its own interpretation of the law.
The DAJ noted that the ruling provides businesses with legal certainty and encourages fair and competitive practices in the financial sector.
The CJEU’s ruling is expected to have a significant impact on businesses offering financial products in the EU. It provides clear guidelines for businesses on what constitutes fair and ethical commercial practices.
Consumers can benefit from the ruling by being better informed about the products they are offered and having more choice in making their financial decisions.
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economie.gouv.fr a new article on 2024-12-04 09:21 titled “Lettre de la DAJ – Proposer simultanément au consommateur une offre de prêt personnel et un produit d’assurance non lié à ce prêt ne constitue pas une pratique commerciale agressive ou déloyale selon la CJUE”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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