Admin l Tuesday, August 08, 2017
MOSCOW, Russia – The Kremlin has proposed an ammendment to federal laws that would enable borrowers to receive part of the premium already paid when the contract is terminates before maturity.
The draft of the law has already been prepared by the Ministry of Justice of Russia.
The law seeks amendments to Paragraph 3 of Article 958 of Part Two of the Civil Code of the Russian Federation ” and “On Amending Certain Legislative Acts Regarding Ensuring the Possibility of Part of the Insurance Premium Paid to the Individual Borrower in the Early Termination of the Contract Insurance in connection with the early performance of obligations under a consumer credit (loan) agreement “.
The draft law according to the ministry provides for the borrower’s right to return part of the insurance premium paid by him upon early termination of the insurance contract in connection with the early repayment by the borrower of the entire amount of the consumer loan (loan), including consumer credit (loan), the borrower’s obligations under which are secured by a mortgage.
“The draft laws will increase the legal protection of citizens as an economically weaker and dependent party in relations with commercial organizations and will contribute to the achievement of a balance between the rights of both parties”, the ministry said.