The Association of Serbian Banks (ASB) has said in a press release that banks clearly present in their mortgage loan contracts the fact that clients take upon themselves the costs of the insurance premium for loans insured at the competent national corporation, refuting the claims to the contrary published by certain media.
– In their contracts on mortgage loans insured at the National Mortgage Insurance Corporation (NMIC), banks clearly state, both at the pre-contract stage and the stage of signing the loan contract that clients take it upon themselves to handle the costs of the insurance premium – says the press release by the ASB.
In line with this, it is further added, the allegations that clients are not presented with this fact, nor the benefits they have from handling the said cost themselves, in the process of loan approval, are absolutely false.
The ASB also emphasizes that the fee for the premium of this type of insurance in no way harms the client, quite the contrary.
– The clients who opt for this model pay their mortgage loan out at an interest rate nearly twice as more favorable than that for loans not insured at the NMIC.
Regarding the decision by the Third Basic Court that found a bank guilty of charging a client for the insurance premium for a mortgage loan insured at the NMIC, the ASB said that it was “merely a decision of court of first instance and the only such decision made so far, and it remains to be seen what the final judgment regarding this issue will be”.
– Keeping in mind the above, it may be said that the recent media allegations regarding this case are very tendentious, that they are trying to create effects not really tied with protecting the client's interest, but quite the contrary, aiming to create financial benefits for organizations and professions inciting clients to sue banks over this issue – the ASB concludes in its press release.