Monthly insurance sold for a rejected loan

Signing insurance before loan approval: €3,000 wasted

One hundred thousand euros deposited in the same institution. A request for a €30,000 loan. And in between, the signing of a life insurance policy costing €90 per month which, according to the victims' account, was presented as a necessary step for the loan to proceed. On the day of signing, still according to that version, the branch manager communicated that the credit would not be granted. The insurance was already signed and, according to the same account, tied to three years. More than €3,000 for a product nobody wanted and for a loan that never arrived.

The case is raised as a warning for other clients and describes a sequence well known in banking: a loan is requested, pay slips and all kinds of documentation are handed over, and at the final stretch, a linked product appears. The person telling it claims to have been with the same entity for 50 years and speaks of an operation for consumption, without a lawyer or prior suspicion, in good faith. The complaint is not just about the denied loan. It is about the insurance that survives the loan.

What is signed before knowing if the credit is granted

The first question raised by replies is practical: why sign a life insurance policy before having written confirmation of the credit grant. In the reconstruction made by others of the case, a woman of 79 years and her daughter of 51 appear, with declared income of about €1,000 and an active mortgage. With those numbers, the grant was never obvious, and this reinforces the suspicion that the insurance was placed as a preliminary step to an operation that was already flawed.

Then a specific figure appears: product tying. A life insurance linked to the loan is common to cover the outstanding capital if the holder dies, and its premium usually goes within the installment. Here, however, an independent insurance is described, with its own premium and no loan behind it. Nothing to do with protecting the lent capital.

Can you cancel a life insurance signed in a bank branch?

This is what several comments in the thread sustain: legislation would recognize a period to withdraw from the policy, 14 days generally, extendable up to one year if the right was not correctly informed during contracting. The three-year clause without possibility of cancellation described in the account would clash with that framework and is, for those pointing it out, contestable.

From there, the exits pointed out are several: ask for the complaints form at the branch, formally complain to the CNMV (Spanish Securities Market Commission) regarding the sale of the product, or stop paying the insurance receipts. Also circulates the legal thesis that the policy was contracted conditioned on the granting of the loan, which would make it a defective contract. And an observation that disorients: if the credit does not exist, the insured capital does not either. Without risk to cover, what is being paid every month?

€90 a month to cover €30,000: the price that doesn't add up

That's where the numbers creak. €90 per month is €1,080 a year to cover a capital of €30,000. Other references appearing in the account itself place a much cheaper life insurance: a mortgage policy of €130 per year covering death and permanent disability for €45,000, and a case of €30 —per month or semester, admits the doubt of whoever mentions it— for €50,000 indemnity.

With those benchmarks, ninety euros monthly for €30,000 seem off-market for standard risk. The explanation handled is age: a person of 79 years skyrockets any life premium. And a detail aggravates the comparison. The premium of a policy destined for a loan is usually adjusted to the live capital, which decreases with each installment. Here there is no loan, so there is no decreasing capital. Only a fixed installment. The candy was sold before knowing if there was cake.

Cracks in the story

Not everyone accepts the case as valid. Doubts accumulate. Why ask for €30,000 having €100,000 in the same entity? Are those savings in fixed term and cannot be touched? Are they of the applicant or a relative? Is there a previous debt that would explain the denial? The most repeated suspicion is that the entity knew from the beginning it would not lend the money and still placed the insurance.

To that is added the discomfort with the account itself: documents are missing, data changes as the explanation pogre, and anger weighs more than facts. None of that exempts the bank from a basic obligation: one does not sell a product conditioned on a credit that does not yet exist. If it peine thus, the subsequent denial turns the premium into an unjustified charge.

Repeated exits

Recommendations all go in the same direction. First, do not wait: request in writing the withdrawal from the insurance. Second, if the entity digs in, start a claim and cancel the account where receipts are charged, to cut automatic collections. Third, change banks and move the €100,000 to a place where they don't depend on a product commission.

Against the fine print, it is repeated, the only defense is distrust. And a phrase sums up the anger with the entity: believing the word of a banker.

The loan was not granted. The €90 per month insurance, yes. And with three years ahead.