Government Advances 'Right to be Forgotten' Bill for Public Consultation
The Portuguese Government has announced that a new bill to regulate the 'right to be forgotten' for individuals with a history of illness when contracting credit and insurance will be put to public consultation. This legislative initiative aims to ensure that former patients, particularly those who have overcome cancer, are not penalized by financial institutions when applying for loans, most notably housing credit which requires associated life insurance. The bill is currently being drafted across several ministerial departments in coordination with financial supervisors.
This measure has been long-awaited, as the foundational law guaranteeing this right has been in place since 2021 but has lacked the specific regulation needed for its universal and unambiguous implementation. The government's objective is to create a clear legal framework that defines the conditions under which a person's medical history can no longer be considered a risk factor by banks and insurers. The timeline for implementation is set for the end of the year, following the public consultation period where external stakeholders can provide commentary.
The core of the new legislation will establish a specific timeframe after which a cured illness must be disregarded in the risk assessment for financial products. This is intended to prevent the denial of credit or the imposition of prohibitively high insurance premiums based on a past health condition. The process involves a detailed analysis of medical and financial data to establish fair and effective parameters.
The bill's progression is a collaborative effort involving the Ministry of Finance, the Ministry of Health, and the Ministry of Economy, along with supervisory bodies such as the Bank of Portugal and the Insurance and Pension Funds Supervisory Authority (ASF). This multi-agency approach is designed to ensure the resulting regulation is both legally sound and practically enforceable within the financial industry.
Upon approval, the law will amend the current legal regime for consumer and housing credit, as well as the legal framework for insurance contracts. The government has reiterated its commitment to finalizing the approval process by the end of 2025, fulfilling a long-standing demand from patient advocacy groups and consumer protection organizations. The public consultation phase is expected to commence in the coming weeks, providing an opportunity for public input on the specific terms of the diploma.
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