Paid for loan insurance in Spain? You could be owed hundreds of euros
If you have taken out a loan in Spain and paid an insurance premium in advance, you may have been […]
Spanish borrowers who paid for loan insurance upfront may be entitled to reimbursement of hundreds of euros, according to the Organisation of Consumers and Users (OCU). The organization warns that some individuals could recover extra charges associated with the insurance premiums bundled into their loans. The issue stems from a European Union ruling in April 2026, case C-744/24, which prohibits banks from charging interest on amounts used for credit-related costs like insurance premiums, if those costs are not actually provided to the consumer.
The Court of Justice of the European Union's decision applies to Spain and other member states, affecting loans such as personal or car loans. OCU provides an example of a €20,000 loan with a €1,000 insurance premium, which could result in an additional €308 in interest charges. To claim the reimbursement, borrowers must review their loan and insurance contracts, and gather relevant documents like the contract, insurance policy, repayment schedule, and communication records.
While the OCU's campaign primarily targets individual and car loans, similar concerns may arise in mortgage cases.
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