Insurance and finance brokers liable for residual debt, or interest disadvantage? Life Insurance and Fixed Loan: A judgment of the Regional Court of Izehoe dated 29.01.2009 (Case No. 7 O 27/09) demonstrates a typical course of events in financing and insurance brokerage. The plaintiff had financed the construction of his house. His insurance and […]
Current BGH ruling: Insurance customers are entitled to repayment A hitherto largely unnoticed, recent acknowledgement ruling by the Federal Court of Justice (BGH) of 29.07.2009 (Ref. I ZR 22/07) surprisingly confirms that a life insurance policy with payment of the annual premium during the year in return for an instalment surcharge constitutes a consumer […]
Life insurance as a bet on lower surpluses or insolvency. Even if the banks are rescued by the state, the life insurers may have to pay for it with their own insolvency. At the very least, however, there is a threat of a reduction in surpluses and thus a lower pension provision for privately insured […]
When customers complained to their “black money bank or insurance company”, especially because once again a CD-ROM with explosive data was offered for sale, the financial houses were happy to point out three alternatives. First the voluntary disclosure, but that route would eat up all the assets, especially if significant investment losses and hefty […]
How bank customers can protect themselves Economically, financing often only makes sense if the money is invested profitably, i.e. the borrowing costs are lower than the return on the investment. But even if this is the plan, credit customers are repeatedly lured into financing traps. Then loan termination and destruction of existence are just […]
How to avoid capital destruction via life insurance In economic terms, life insurance policies are often investments that compete with traditional bank products. Intransparency, faulty advice and incorrect billing cost customers billions every year. In most cases, there is then a claim for back payment, reclaim or compensation. However, insurers will not pay without […]
Mr. Fiala, those who pay their insurance premiums in installments can claim money back. Why? If the insurer does not show an effective interest rate, it may collect a maximum of four percent. Some take more, but in doing so they are in effect giving a consumer credit. If a customer pays a five percent […]
Because of high commissions banks like to sell to loans equal to a residual debt insurance. Until recently, banks believed that loans and insurance were each separate contracts with separate cancellation rights – which was the only way they supposedly properly instructed customers … But now, to everyone’s surprise, the Federal Court of Justice […]
Mr. C., an insurance broker, appears and presents the following model to the entrepreneur: You won’t get any more money from the bank – from me you will get an infinite amount of liquidity, and this without any credit security. Your bank will also be thrilled, because gone is the state of high costs due […]
From an economic point of view, financing only makes sense if the money is invested profitably, i.e. the borrowing costs are lower than the return on the investment. But even if this is the plan, credit customers are repeatedly lured into financing traps. Dr. Johannes Fiala, lawyer, and expert Peter A. Schramm, Munich, have compiled […]
