The Bank of Spain has imposed a 16.5 million euro fine on Banco Sabadell for a very serious infringement involving mortgage sales. Between January 2022 and March 2023, the lender conditioned mortgages on the purchase of insurance policies, violating regulations.
The fine relates to non-compliance with Law 5/2019, which regulates real estate credit contracts. Authorities found Sabadell failed to act with impartiality, using prohibited tied selling practices. The penalty was calculated based on estimated profits gained.
While the fine is final through administrative channels, Sabadell has appealed to the Supreme Court. This follows a 25 million euro fine for CaixaBank. European rules and the Supreme Court have previously declared such linked insurance practices as abusive.
