The Provincial Court of Salamanca has condemned a banking entity to return the dues to the heirs of a person to whom after their death they continued to be charged the mortgage payments instead of activate Life insurance linked to the credit he had.
The bank’s client died in 2016 and the family members were charged the fees for one year, for an amount of 3.200 euros. This amount must be returned, plus the costs, since banks are prohibited from claiming loan installments if there is Life insurance that guarantees them, according to the bulletin. Legal News.
Jess Lorenzo, lawyer of the Aboga2 law firm, has pointed out that “it is immoral for a person with Life insurance to die and that the financial institution continues to collect the installments of the credits from the heirs for months”, and recalls that “when we contract Life linked to a loan we do it with the objective that our heirs do not have any kind of problem with our death. “
The Judgment also indicates that the insurance was “an insurance contract linked to the main loan contract” and that it is part of it. “Not only is the agreement of the insurance conditional to achieve the granting of the loan (as it appears in the same document), but also its agreement with an insurer linked to the bank is imposed,” the ruling highlights.
Thus, the sentence states that “once the accident (death) has occurred, good faith and respect for morals determine that it is legally enforceable that the bank claims the insurer and not that it decides to continue demanding payment of the outstanding principal from the insured borrowers. “
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