The French insurer SFAM was sentenced for using aggressive business practices and misleading consumers when selling insurance policies for electronic devices, the Federal Ministry of Economy announced in a press release on Friday.
Customers in Belgium who signed an insurance policy for their devices with SFAM would unknowingly consent to unrelated additional services, an investigation into the French insurer revealed. SFAM, without explicit consent, would then make regular direct withdrawals from customer bank accounts, which often did not match agreed amounts.
The investigation also revealed that unilateral adjustments were made to contracts and that terminating them was "almost impossible", according to the Ministry. These practices in Belgium affected customers who took out an insurance policy when buying tablets, computers, or cellphones in shops like FNAC, Vanden Borre, or Hubside.Store.
The Brussels Business Court’s ruling, which took place on 3 July 2024, states that any money withdrawals by SFAM after the conviction will result in a €5,000 fine, which can go up to a maximum of €100,000.
Consumers who have had money withdrawn from their bank account by SFAM after 3 July 2024 are encouraged to file a report via the online platform ConsumerConnect.
In 2023, SFAM was banned from selling insurance policies, after action was taken by the Financial Services and Markets Authority. However, this did not impact policies already in force, the Ministry explained.
SFAM’s parent company, INDEXIA group, is going through bankruptcy proceedings in France, following an order by the Paris Commercial Court in April.
