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Ultimatum to Spanish Banks for Abusive Clauses

The current legislation on the floor clauses in Spain seems to have the hours counted. Especially after the recent report of the lawyers of the European Commission urges the Court of Justice of the European Union (ECJ) to apply retroactivity on the entire amount paid by the affected before the Supreme Court ruling of May 2013.

For context, the Supreme Court declared null soil abusive clauses in mortgage loans in a landmark ruling in May 2013. Subsequently, on March 25, 2015, the High Court issued a new judgment applied by the return of the amounts paid by affected by these abusive conditions only after 2013, coinciding with the date of the Supreme.

However, law firms and even the judges themselves have been put in serious doubt the doctrine established by the Supreme and have gone further. Many judgments of the provincial courts condemning lead banks to return the money affected. Although for now, banks have resorted to the Supreme Court, which has already ruled on the matter.

At the same time, many judges have approached the Court of Justice of the European Union (ECJ) to inquire about the legality of the conditions of the Spanish laws on lending, where mortgages and credit terms are included linked to them. In most statements, the ECJ has ruled in favor of consumers.

But now, for the first time, a European body goes further and argues that those affected must recover everything paid for the implementation of the soil if it is declared invalid in court clause.

“To declare the nullity of something means, simply, that has not existed since its creation or generation, and what there is to produce the restitution or return of all that occurred during its term, as stipulated in our Civil Code 1,889 and the various national laws and European character, such as Directive 93/13, “say Carmen Giménez, lawyer holder of G & G lawyers.

Meanwhile, the bank is moving tab has reached an agreement with the Ministry of Economy to eliminate all ground clauses in Spanish mortgages, but without the mortgaged were given the amounts paid prior to its removal in 2013.

Financial sector sources say the cost of paying retroactive clauses judgments against soil could reach 20,000 million euros. CaixaBank and Bankia already announced that they would remove these conditions in their loans with a cost of around 265 million euros between the two; Instead, organizations like the Popular still remain valid.

“This ruling is not binding and is only an opinion of the legal services of the Commission. But it is a very qualified and based on the opinion Union directives, which are binding standards for different states, “says Eduardo Trivedi, Trivedi CEO of Lawyers. Therefore, we must wait for the European judicial ruling to see if you can sit jurisprudence.

How much does is cost the mortgaged?

According to estimates by the Association of Users of Banking (Adicae), clauses have been a ground for victims of prejudice between 2,150 and 4,277 euros per year, depending on the loan granted. Although the clause was signed ground since the beginning of the mortgage, it did not occur until the fall of interest rates did not begin to apply the floor (in 2009), which prevents the mortgaged benefit from it and pay a fee Monthly smaller. To Adicae, the cost paid for more than one family could reach 25,000 euros.

The Commission report is the first step for the ECJ to rule in favor or against retroactivity of sentences against ground clauses. “We must be about as large inflated figures that can jeopardize the sustainability of the financial system. It may not come to demand his collection for fear of breaking the sector “, they say from Adicae.

And for users who are signing agreements with the banks?

Users Association of Banks has denounced abusive institutions are offering proposals to customers trying to negotiate with the bank instead of going to court.

“The institutions are offering users reduce soil clause in exchange new conditions and, above all, signing a declaration on its perfect knowledge of the consequences and risks having this commission,” they say from Adicae.

The conditions include, for example, reduce or eliminate ground clause temporarily for a few years. Also they proposed removing the clause in exchange for a widening of the spread of the loan or obligation to hire additional products such as life insurance or payment protection.

Now, therefore, it left alone to await the judgment of the ECJ ruling on this-not binding- presented by lawyers from the European Commission. Whatever your decision will be binding on all EU members.

The high demand for luxury property in Marbella keep pushing the prices higher and higher every month, so If you would like Xcape Real Estate to help you find the right property on the Costa del Sol, Southern part of Spain or achieve your Spanish Residency, please do not hesitate to fill the form on Contact Us or give us a call on +34 952 811 010 Now!

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Source: Idealista

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