The stubbornness of banks and the condemnation to repay interests and costs in Spanish off-plan property claims

The stubbornness of banks and the condemnation to repay interests and costs in Spanish off-plan property claims

Known already are the countless Sentences that have proliferated throughout Spain since Keith Rule, the Erin Brocovich of Spanish off-plan property fought in courts and in financial and political fields to get his victory in the Finca Parcs case with the legal teams CostaLuz Lawyers and DeCastro.

The Court of First Instance 17 of Malaga has just condemned Banco Santander for an off-plan development promoted by Aifos in the Cala del Sol development to the repayment of € 110,603 of principal plus interest since the off-plan amounts were paid in 2004, which is an additional € 77,000 plus the legal costs.

The punishment that the Spanish banks are suffering by continuing to fight, in this and in many other cases, what is already consolidated doctrine of the Supreme Court, is almost equivalent to the amounts that they original accepted into the developer’s accounts as the off-plan deposits.

The Provincial and First Instance Courts are, almost unanimously, condemning banks to pay the costs and the Banks continue opposing the payment of costs & interest which results in those affected being subjected to a much longer and tedious judicial process, with the consequent burden that this implies for the Spanish Courts and the pockets of the Spanish taxpayers.

There are voices that speak of the need to ask the Bank of Spain or the Government to take active and strong measures to force the banks to avoid this permanent flood of lawsuits that are collapsing the Courts and diminishing the effectiveness of Justice in Spain.

These judgments, together with all recent judgments on abusive clauses in mortgage loan contracts or in foreclosure proceedings, are a sign of a new era in the way that society and judges understand financial services. It is the person, the consumer, who should be protected and not the balance sheets of the financial entities.

Good for Keith and his determination to fight for this matter since 2008. Good for society.

©2016 CostaLuz Lawyers. All rights reserved. Privacy policy and cookies. Copyright and disclaimer.