Spain Supreme Court Decission on the importance of pre-contractual information for mortgage contracts in Spain

SENTENCE No. 643/2017 OF TS, ROOM 1, OF THE CIVIL, NOVEMBER 24, 2017 A recent Sentence which gives protection against abusive clauses to all mortgage debtors who subrogated developer’s mortgage contracts during the real estate boom. This is another sign of the magnificent work the Supreme … [Read more...]

Spain’s Supreme Court keeps explaining Floor Clauses in Mortgage contracts: No agreement can eliminate effects of nullity

What is null and void cannot bring any effect or as the Roman’s used to say “Quod null est, nullum effectum producit” When a clause is null and void, it is null from day 1 of its existence and all effects derived from its inclusion on a contract, need to be reversed as they should have never … [Read more...]

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 … [Read more...]

Stop negative equity in Spain

There are hundreds of buyers with negative equity in Spain as they were granted huge mortgages during the real estate/ financial boom for properties that have suffered a dramatic value loss along the last years. Once the bubble burst and many property buyers were over debiting, Spain Government … [Read more...]

Floor Clauses – Supreme Court confirms refund of ALL overpaid interest

Following the Sentence issued by the European Court of Justice in December 2016 regarding the retroactive effect of nullity of abusive Floor clauses (Cláusula Suelo), Spain’s Supreme Court has now ordered Spanish banks to refund their clients all the money they over-paid due to the Floor Clauses. … [Read more...]

Questions and answers on extrajudicial (out of court) procedure for the return of overpaid interest due to floor clauses in Spanish Mortgages

How to claim a refund of overpaid interest due to floor clauses in Spanish Mortgages These steps need to be followed:1.- Claim to your bank office/branch 2.- The bank must send to the consumer the calculation of the amount to be returned, including interest or, where appropriate, the … [Read more...]

Remove the Floor Clause from your mortgage and claim a refund of overpaid interest

1. What is a Floor Clause? (Cláusula Suelo) Many property buyers in Spain were sold mortgages by Spanish Banks at a variable rate linked to the Euribor (the Eurozone base rate). However, a large number of those mortgages also included a 'floor' (Cláusula Suelo) which was normally set anywhere … [Read more...]

Cláusula Suelo – ECJ Press Release – 21 December 2016

COURT OF JUSTICE OF THE EUROPEAN UNION - PRESS RELEASE No. 144/16 - Luxembourg, 21 Dec 2016 CLAUSULA SUELO - MORTGAGE FLOOR CLAUSES Spanish case-law placing a temporal limitation on the effects of the invalidity of ‘floor clauses’ included in mortgage loan contracts in Spain is incompatible … [Read more...]

Spanish Banks Ordered to Repay Billions to Mortgage Borrowers

      CLAUSULA SUELO Spain's banking sector was hammered on Wednesday after the European Court of Justice ruled that lenders will need to reimburse mortgage customers who were overcharged on interest payments. The Spanish Supreme Court had previously ruled that the refunds should only apply … [Read more...]

Spain’s Supreme Court is playing with Floor Clauses

Spain's Supreme Court is playing with Floor Clauses As colleague Pablo Miguel Piñeiro is saying today in a Legal Today post http://www.legaltoday.com/practica-juridica/civil/civil/reflexiones-al-hilo-de-la-irretroactividad-de-las-clausulas-suelo?voto=2 Supreme Court solution on Floor Clauses … [Read more...]

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