Real estate loan: the obligation to domicile his bank account is abolished

The law on bank domiciliation obliges customers to lock up their accounts while the authorities intend to strengthen customer mobility. A real euphemism that has just ended.

The law on bank domiciliation obliges customers to lock up their accounts while the authorities intend to strengthen customer mobility. A real euphemism that has just ended.

An arduous assessment of the benefits allocated

The commitment to domicile his income after a mortgage negotiation is no longer relevant following a new amendment in the act. In itself, the measure did not provide for a strict obligation to domicile one’s account when a loan was terminated. It is indeed the lending institution that conditioned the acceptance of the home loan in exchange for a commitment to domicile an account during a period spread over 10 years in general. On the other hand, the law suggested that the borrower should receive a concrete individual advantage in exchange for this promise.

This advantage could be of different natures: a lower interest rate than expected, a lower contribution, lower fees, etc. But consumer associations were dubitative because it was sometimes complex. arbitrate on the veracity of these advantages granted. Indeed, in a period when interest rates are very low, it is difficult to recognize if the one granted as a personalized benefit was really.

Incoherent immobilization with the mobility wind

Incoherent immobilization with the mobility wind

Although this law, introduced in January 2018, was originally intended to protect consumers, it has mainly allowed banks to use it in most real estate projects to finance. A perverse effect that went against the philosophy of the Macron law that dates from 2017 on banking mobility. As a reminder, this law allows the French to automate the transfer of a bank account from one bank to another without paying the least cost. An easy process that makes banking change much easier. And the law on bank domiciliation seemed not to correspond to the executive’s desire to increase competition within the market.

For that, the deputies chose to vote massively in favor of a pure and simple suppression of the law which obliges the domiciliation in return of a benefit during a negotiation for a mortgage. This decision was the subject of an umpteenth vote held on March 15, 2019 at the meeting. Unsurprisingly, the deletion is confirmed. Through a comment formulated by the bank federation, the banks say regret this decision which undermines the regulatory stability of the sector to the detriment of customers.

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