December 20, 2024
In mid 2019, legislation meant that banks were forbidden to add single premium life insurance to mortgages. Despite that, we have cases from as recently as 2022 where Sabadell, who are the owners of TSB in the UK, continued to comply with the ruling.
Also famous for selling single premium life insurance was Banco Popular. Due to mass mis-selling, they were finally sold to Santander in 2017 for the princely price of one euro.
Here is another interesting case involving a Sabadell mortgage taken in the Mojacar area of Spain, not just a tourist destination for many, but where many people from Britain have now chosen to relocate too.
In this particular case in early 2016, our client took a small mortgage of €36,000 over 30 years. Incredibly the bank insisted he take €8,500 of single premium life insurance which was then added to his mortgage from the outset.
If that wasn’t bad enough, he subsequently repaid the borrowing less than 3 years later and received absolutely no refund on the premium he paid. Our lawyers submitted an mis-selling complaint to Sabadell on his behalf and within a small number of weeks he received a full refund for the unconsumed portion of his premium which amounted to just over €7,000.
