Four weeks ago we presented our test on credit portals and generally recommended it for credit comparison. However, we warned against taking out so-called residual debt insurance with the loan. It is very expensive, but its protection is imperfect. Nevertheless, the portals previously offered the insurance packages in passing, and some customers may have taken out expensive insurance with the cheap loan.
Some portals responded to our criticism and promised improvement. In the meantime, the application routes have improved for several. The so-called IDD directive of the EU is likely to have played an important role in this. This has recently required providers to specifically ask customers’ needs.
In future, customers will no longer be slipping into unnecessary protection as quickly. Unfortunately, the three credit portals are still trying to give the impression through suggestive wording that you as a customer absolutely need insurance.
If you have taken out expensive insurance for your loan in the past, you have two options for getting rid of the insurance: cancel or revoke it later. We explain how to do this in our guide.
“No, I bear all costs and risks myself”
And this is what the application routes looked like when we went through them again at the end of March: Credcheck48 is now giving its credit customers the choice of “Yes” or “No” under the heading “Interest in credit protection”. You can’t go on without a hook. We like that. We do not find it so good that the answer Yes is highlighted in green and provided with the addition: “Yes, I am interested in simply securing the loan.” The answer No, on the other hand, is black and provided with the note: “No, I am carrying all costs and risks themselves and do not need credit protection against unemployment, restrictions and death. “
Moneysparks is still going another way. The portal has not yet asked prospective creditors to take an active decision about the insurance package, but has preset the waiver of residual debt insurance. Even with this solution, you do not “accidentally” get this insurance.
All four comparison portals are well suited to finding a cheap loan – which is why we recommend them. Only a residual debt or credit insurance should not let you gossip.
And because politicians are aware of the problem, the IDD directive has also made it mandatory to send information a week after it has been completed, in which you will be informed about your right to object. Only then does the 14-day cancellation period start to run. (Or the 30-day one, that is, in cases where insurance for death is included.)
How to get rid of your insurance
However, in the past it may have happened to you that you involuntarily took out an insurance contract for a loan due to the striking appearance. Then you now have two options to get rid of this useless insurance: cancel or revoke it later.
The conditions under which you can terminate the insurance separately from your loan agreement are stated in the small print of the insurance. If there is a minimum insurance period, you can only get out of the insurance contract by repaying the loan. You can implement this in such a way that you reschedule the loan, i.e. apply for a new loan from another bank for the outstanding loan amount and forego the insurance packages offered. Final costs and previous premium payments for the previous insurance package are then lost, but you can still get back the insurance premiums for the rest of the agreed term.
Subsequent cancellation is possible if your cancellation policy was incorrect. This is the case in more than 80 percent of all credit contracts with residual debt insurance that were concluded before mid-2010. You can read more about this in our guide.