Penalty Charges for Partial Payment of Insurance Premiums Could go Soon
It is common practice in the insurance industry – the charge for partial payment of insurance premiums. Yet this is currently the focus of consumer protection, courts and the media. In future, it could happen that the margins of insurance companies for partial payments will fall significantly.
Premiums for part-payment of insurance contributions
Normally have to pay the insurance rate premium for an insurance policy for a whole year in advance. This condition basically all works provide the various insurance companies. But many customers do no annual payment. After all, this is already not easy to do at the end of the year or the beginning of a year just to pay even up to several thousand euros for the whole insurance. Therefore, many would like insurance, the contributions to be paid monthly, quarterly or semi-annually.
This desire to come to most insurance companies and offer a partial payment of insurance premiums. But for the payments to be part of the insurance rate premiums, almost an indirect interest. This is according to the Consumer Hamburg, but on average at 13 to 14%. This is to protect consumers an eyesore, especially since the insurance companies do not inform your customers about these high interest rates. But not only the insufficient information interferes with the consumer protection agency in Hamburg. In the current practice, the insurance companies failed in the opinion of consumer advocates against the Consumer Credit Act and applicable EU regulations.
If the Hamburg consumer advocates actually have success with your complaint against the premiums for part payment, this would lead to massive repayments on the part of the insurance industry. Experts estimate the repayments of the increases even with billions of euros. A massive burden on the entire insurance industry.
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