Banks Mis-Sold Life Insurance Policies as a Requisite for Mortgages

Banks for years have been selling expensive life insurance policies to those seeking a mortgage, when  purchase a property in Spain. Most bank staff and usually the directors, have pressurised homeowners by insisting that the policy was a requisite to obtain the mortgage. For those who wished to have a policy, were often not advised that they could shop around and find cheaper quotes from insurance companies.

The only insurances that a bank can insist on linking to a mortgage, is a buildings insurance.

Anyone who was sold a policy as a requisite for the mortgage, have most likely been mis-sold a product and should talk to their banks. These banks will have a plethora of excuses with no intention of admitting wrongdoing.

For a couple of years and when asked, I have personally (not as a CAB Spain adviser) taken on the banks and have had monies refunded for at least seven homeowners. I carried this out using legal procedures but avoided litigation. Refunds equalling between 2,500 to over 6.000 euros have been enjoyed by those I assisted on a ‘no win not fee’ basis.

I have had certain banks refusing to make refunds without proceeding to the courts. These bank I no longer challenge and interested parties would need to contract a lawyer to proceed against these banks. The lawyers who support CAB Spain have not been keen as they say that to date, there has been no precedent set in the courts, yet I have succeeded without litigating.

It was only a couple of weeks ago when homeowners were refunded over 6.000 euros. This is what they wrote. Names and some details have been removed due to data and other protection:

“To Whom It May Concern.

We live in Cordoba Province and have just received remuneration to the
value of 6.000,00 euros from Santander Bank because of mis selling. This
has only been possible because Myra Azzopardi has fought, tirelessly, through the
appropriate administrative channels, to reclaim the monies owing to us.

We are incredibly grateful and would highly recommend anyone in a similar
situation to use her. The charge for this work was a mere 20% of the
monies returned to us and we think this is wonderful value for all the
time and effort put into our claim”

I am presently reclaiming a refund on a very expensive policy sold.

UPDATE: Last week 8000 euros was refunded in the case above.

I stopped taking cases a couple of years ago.

Update 27.03.2017 A judge has annulled a life insurance linked to a mortgage due to lack of consent. Clients reimbursed.

After my successes a few years back, I had asked various lawyers to consider the gains made for my clients and to take on similar cases for our members (I am not a lawyers and achieved positive results and in each case, the bank settled with without the need to go court) The response was always that they could not as a precedent had not been set. Now with this sentence from known lawyers, I suggest the possibility of actions on these cases.

For further information:

myra@citizensadvice.org.es

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.