Spain’s Supreme Court rules that banks must pay interest and court costs on Floor Clause cases

In a very recent sentence dated 11 October 2017, the Civil Room of the Supreme Court reiterated doctrine first expressed on 4 July 2017.

In accordance with the principles of defeating, not linking the consumer to the abusive clauses and effectiveness of European Union law, the Court costs of the instances in these types of cases are to be imposed on the defendant bank.

The principle of defeating establishes that party who loses the case pay the costs of the counterparty. This way, the appellant consumer in cassation, will see his situation fully restored and Banks will receive a dissuasive message for stopping the inclusion of the floor clauses in mortgage loans.

Regarding the matter of interest, a recent Supreme Court sentence dated 20 July 2017 reiterates the argument set in a previous sentence dated 24 February 2017 which explained that, when by virtue of declaration of a clause as null and void, amounts are to be refunded, according to provision 1303 of the Civil Code, interest is attached (principle of full restitution).  This pronouncement on full interest to be paid by the Banks who are condemned in floor clause cases was initially expressed in a Supreme Court Sentence dated December 2016.

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