The Court of First Instance 20 of Zaragoza fully upheld the lawsuit filed by Arriaga Asociados against Banco Sabadell for forcing the customer of a mortgage loan to take out insurance with the Entity’s own insurer. Thus, the imposition by the banks of contracting life and non-payment insurance, as a requirement to grant a loan, is null.
In the procedure, which began in April 2022, the nullity of the clause relating to life insurance linked to the mortgage was requested. The Court, when upholding the claim, orders the Bank to pay the client more than €8,000 paid for the Insurance, plus legal interest and also ordered costs.
It is a widespread practice of Credit Institutions in our country to impose on their clients the contracting of life, risk and/or payment protection insurance, as a requirement for granting a mortgage loan. In other words, consumers who wanted to obtain a mortgage necessarily had to contract these products. The problem arises when the entity not only forces you to contract the Insurance, but also determines its conditions unilaterally.
Abusive clauses:
This unilateral establishment of the conditions, was translated in the case of the sentence (as well as many others) in questions such as that the insurance should be contracted obligatorily with the bank’s insurer; the single premium payment modality was established, that is, the entire price of the insurance is paid at the time of contracting, instead of paying it annually, monthly; or that the amount of this single premium had to be financed (integrated into part of the loaned capital), that is, there is a part of the loan that is used to acquire the home and another part, to pay the premium of the contracted insurance.
More people in the same situation
From Arriaga Asociados we understand that these practices are abusive and this has been confirmed once again by our Courts
In this way, Arriaga achieves that his clients obtain justice and, in addition, have fair compensation that people who are in the same situation can benefit from.
