Spanish Banks Mislead Loan Customers About Insurance

Spanish Banks Mislead Loan Customers About Insurance: Lawyer Exposes Common Practice In Spain, many banks are employing a deceptive tactic when it comes to personal loans and life insurance. Miguel Orellana Gomez, a banking and insurance lawyer, has exposed this practice, highlighting the rights of consumers. Many banks pressure clients into purchasing life insurance alongside their loans, falsely claiming that canceling the loan requires canceling the insurance. This is untrue, as the contracts are independent. "Many banks try to pressure you into taking life insurance with your personal loan, but it's a lie!" explains Mr. Gomez in a recent video. "If you decide to withdraw from the insurance, it does not affect the loan." He further explains that he has been contacted by numerous clients who were misled by banks into believing that the two contracts were linked. One client, according to Mr. Gomez, "was scared and told me that the bank said if he desisted from the insurance, he had to desist from the loan as well." This is false, and Mr. Gomez stresses the importance of understanding that loan and insurance contracts are independent. Spanish consumers have a right to withdraw from insurance contracts within 30 days. Mr. Gomez's video serves as a crucial reminder to consumers to be aware of their rights and to challenge deceptive banking practices. The video has already garnered significant attention, emphasizing the importance of this issue.