Your Legal Magazine
Page 10
Female Focus
Supreme Court rules that banks should refund mortgage overpayments.
Spanish banks could have to repay at least 4.5 billion euros to its customers. The Supreme Court has condemned 40 banks and savings banks for operating an interest rate floor (Clausula Suelo) and ordered them to return these overpayments to their customers. The clauses were introduced to protect banks from negative interest rates.
It is estimated that 4m mortgages were affected, with many of them sold during the 1997-2007 property boom. When the bubble burst these customers were unable to benefit from falling interest rates, while the banks were taking millions in overpayments every month.
The majority of Spanish mortgages are linked to Euribor and with interest rates in negative territory many customers have been surprised and disappointed that their own mortgage payments have not fallen in line with the rapid decline in interest rates since 2008. This is because many banks have included a clause where the variable interest rate cannot go above or below a certain level. Frequently the ceiling is as high as 13% while the 'floor' is set between 3 and 4 percent. However, bearing in mind that in the last 20 years Euribor has never been above 7% but spent long periods below 4%, this benefits the banks far more than the borrowers.
A few years ago a class action, involving 15000 mortgage customers, was mounted against three banks - BBVA, Caixa Galicia and Cajamar claiming that this clause was abusive and should be declared null and void. On the 9th May, 2013
Spiritual Friends
Spiritual Friends is a meeting place for spiritually minded people. Each week is different. Meetings are held in Moraira, include visiting Mediums, speakers on various healing techniques and
holistic subjects, discussions and workshops. For more information see
www.spiritualfriends.es or contact Jan on 600 837 054 or email spiritualfriends.
teulada@gmail.com. If you are a clairvoyant, or specialise in any spiritual/ holistic subject and would like to give a demonstration/ talk, we would love to hear from you.
the Spanish Supreme Court (in judgment No 241/2013), ruled against the defendant banks, declaring this 'floor' clause null. The judgement states that the banks did not act in good faith in establishing these clauses given that they had advantageous access to financial information on future Euribor rates.
So although the clause, know in Spanish as “Clausula Suelo”, was not illegal, the fact that it was hidden in the small print and conditions of the mortgage breached the trust of the client. How would you know if your mortgage is one that owes you money? Check your escritura and see if there is a maximum and minimum level written into the mortgage. If you are not sure ask your bank or a lawyer. Some Law firms are handling cases on a no win no fee basis and can help you get refunds for past overpayments and force the bank to reduce your future interest rate saving even more money.
To find out if you have a claim please contact Mats Rosenberg of Hezgon Asociados on 966 181 850 or 603 182 320. See advert above for more details.
Calpe U3A Choir
The Calpe U3A Choir enjoyed singing to a 'Full House' on Wednesday 13th April, in the Casa de Cultura, Calpe. They already have requests, from the most appreciative of audiences, for their next
Concert. A donation from ticket sales of 600€ was received by Antonio on behalf of Caritas, Calpe. They are looking forward to rehearsals starting
in preparation for the Christmas Concert. For more information on Calpe U3A please visit
ww.u3acalpe.org.
again in September
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