The Central Bank’s regulation published in the Official Gazette last week could not finish the forced insurance sale of the banks, which has become a bleeding wound of the citizens for the last 15 years. Banks did not give loans and accelerated the sale of insurance.
Forced insurance and unnecessary packages account for 90 percent of all bank-related complaints made to both the Banks Association of Turkey and the BRSA. With the latest regulation, the Central Bank has limited this forced insurance. However, statements such as the fact that the regulation in question was not strictly prohibited and that it could be done with the consent of the citizen caused the banks to continue to press on this issue.
NO INSURANCE, NO CREDIT!
Forcing banks to take insurance while taking loans is also prohibited by the Consumer Law, which was enacted last year. However, banks do not give loans to citizens who do not have insurance. Banks that do not use the phrase “We do not give credit because you do not have insurance”, respond as “the system rejected your loan request”. At this point, the offer “If you make insurance, the system will approve because it is guaranteed” comes. A citizen in a difficult situation, who is obliged to get a loan, is sometimes forced to buy not one, but 3 separate policies with his own helpless consent.
BANKS INCREASED INSURANCE TARGETS
On the other hand, after the Central Bank’s latest interest rate decision, banks are not willing to give long-term loans. In personal loans, it declares the interest rate exceeding 50 percent and the insurance condition verbally, not in writing. Banks give a weekly insurance target by putting great pressure on their personnel in this regard.
INSURANCE AGENT, NOT BANK
The insurance target given by Paramedya.com.tr to the personnel of a private bank it acquired reveals that banks operate more like insurance agents than banks. The private bank’s weekly insurance target includes more than just banking activity.
RESTRICTIONS SHOULD BE IMPLEMENTED ON INSURANCE SALES
Banking and finance experts state that all the laws enacted are not enough to put an end to the insurance tyranny of banks, and that the only solution to this issue is to restrict the sale of insurance by banks.