EU Court: Offering Loan and Unrelated Insurance Simultaneously Not Unfair or Deceptive
Paris, December 16, 2024 – The Court of Justice of the European Union (CJEU) has ruled that offering a consumer a personal loan and an unrelated insurance product at the same time does not constitute an aggressive or unfair commercial practice.
The case stemmed from a complaint filed by a consumer advocacy group in France. The group alleged that a bank had engaged in aggressive commercial practices by offering a personal loan and an accident insurance policy to consumers simultaneously. The French courts referred the case to the CJEU for a preliminary ruling on the interpretation of EU law.
In its judgment, the CJEU held that the simultaneous offer of a loan and an insurance product did not constitute an aggressive commercial practice because the consumer was not subjected to undue pressure or harassment. The court also found that the offer was not misleading or deceptive because the consumer was clearly informed about the terms and conditions of both the loan and the insurance policy.
The CJEU’s ruling is significant because it provides clarity for businesses on the issue of bundling financial products. Businesses can now offer loans and insurance together without fear of violating EU law on unfair commercial practices, as long as the consumer is fully informed and not pressured into purchasing the products.
The ruling is also a victory for consumers, as it ensures that they have access to a wide range of financial products and can make informed decisions about their borrowing and insurance needs.
Key Takeaways for Businesses:
- Businesses can offer loans and insurance products together without violating EU law on unfair commercial practices.
- Consumers must be fully informed about the terms and conditions of both products.
- Businesses should not subject consumers to undue pressure or harassment when offering financial products.
Key Takeaways for Consumers:
- Consumers should carefully consider the terms and conditions of any financial product before making a purchase.
- Consumers should not be afraid to ask questions and seek clarification from businesses about financial products.
- Consumers have access to a wide range of financial products and can make informed decisions about their borrowing and insurance needs.
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economie.gouv.fr a new article on 2024-12-16 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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