This decision follows the scandal with Switch stores, where many statements from customers who felt they had been cheated were brought to light at the beginning of the year. The Financial Supervisory Authority (FSMA) had decided to carry out inspections in several of the brand’s points of sale and had found a lack of compliance with certain legal or regulatory provisions, especially with regard to customer information and compliance. Specifically, Switch employees signed expensive insurance contracts without really saying so, and customers didn’t realize it until a few months later after a free period. Following its inspections, the FSMA banned Switch from marketing insurance products in Belgium. The brand has now disappeared and the stores have been partially taken over by Lab9 Stores.
At the same time, legislative work to prevent this practice from taking place resulted in a royal decree, co-signed by Secretary of State De Bleeker and Ministers Demargne and Van Peteghem. The general principles of insurance are not questioned, but it is now prohibited to offer offers that start with a free period. “From now on, the periodic bonuses must be the same and spread equally over the duration of the contract. Teasers and increasing bonus payments will no longer be possible,” the Secretary of State’s office clarifies.
