Consumption fines Rental Insurance with 3.6 million euros for abusive practices against tenants

The General Secretariat of Consumption and Gaming, a governing body belonging to the Ministry of Social Rights, Consumption and Agenda 2030, has decided to fine the company with 3.6 million euros real estate Rental Insurance for carrying out abusive practices against tenants. This department considers that the company has used its dominant position in the market to violate consumer rights over a long period of time.

Among the illegal practices cited by Consumption are the imposition of an alleged tenant care service, through which the collection of expenses is concealed. which should be assumed by the owneras well as the obligation to take out home insurance and an economic solvency study. Added to this is the limitation of the right to withdraw from the contract and the burden on tenants of all expenses derived from judicial or extrajudicial claims.

The Consumer resolution concludes that The real estate agency has committed six infractions classified as “very serious” and one like “serious” by virtue of the provisions of Royal Legislative Decree 1/2007, of November 16, which approves the consolidated text of the General Law for the Defense of Consumers and Users and other complementary laws

Specifically, the six very serious violations have resulted in a fine of one million euros, another of 990,900 euros, three of 500,000 euros and another of 100,001 euros. The serious infraction is sanctioned with 10,001 euros. In total, 3,600,902 euros. Now, the company can file an appeal before the Minister of Consumer Affairs, Pablo Bustinduybefore exhausting the administrative route.

This process started in 2023 when FACUA-Consumers in Action denounced the real estate company for forcing tenants to pay them the equivalent of one month’s rent plus 21% VAT, a charge that they justified in the provision of a ‘tenant service’ that included, among others, ‘advice for the management of change of ownership of energy supplies’‘legal advice‘ about the rental contract and even ‘resolution of accidents and incidents’, a management that in many cases corresponds to the landlord himself.

The head of Consumption, Pablo Bustinduy, then indicated that his ministry cannot allow “no company is above the law”. “In the rental market, the law of the jungle has been imposed and abuses are occurring. A situation of defenselessness of consumers is occurring, which violates the right to decent housing,” he stated.