Chile: FNE seeks US$3 million fine for hiding insurance information

The National Economic Prosecutor’s Office of Chile has requested that a fine, for US$3 million, be applied to the BCI bank after manipulating information regarding its mortgage credit insurance, concealing the cheapest options from clients.

The prosecutor’s office would have conducted two investigations into the operation of insurance bids for mortgage loans, after which it accused BCI of excluding offers that included a lower price of the lien insurance, which led to the choice of a more expensive proposal, presented by BCI Corredores. The FNE determined that this would have caused damages to more than 80 thousand debtors, who would have paid close to $1,500 million pesos (US$2 million) in excess charges.

The FNE accused BCI of benefitting from the move, obtaining income that it would not have received if the tender had operated under competitive conditions. In response, the bank said it will analyze the background information once they receive the formal notification of the requirement.

Full Content: CNN Chile

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