Briefly, your right to reclaim (+Start your claim)

by Legal editorial team
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Over the past decade many Spanish banks have issued mortgage agreements that have been found to contain “Abusive” clauses resulting in borrowers paying far more interest on their loan than they should.

The European Court of Justice and Spanish Supreme Court have ruled that such clauses are unlawful and that mortgage holders are now entitled to challenge them. They can apply to the courts to have their mortgage reduced, and reclaim overpaid interest.

Spanish Courts have also highlighted the setup costs that borrowers have traditionally paid when they take out a Spanish mortgage.

They include stamp duty, notary, land-registry and admin fees, and they amount to about €3,000 on a €150,000 mortgage. The clauses introduced by some lenders, forcing borrowers (many of which were unaware of the clauses) to pay all fees related to taking out the mortgage were found to be abusive.

Last year, the courts decided that the banks should pay all, or at least some, of these fees, as it is in their interest, not the borrower’s, to protect the loan by getting it notarised and registered. Now the ruling, known as 705/2015, is making headlines as it filters down to regional courts across Spain.

It has also been discovered that banks imposed unfair restrictions on customers with regard to insurance products and bank staff pressured borrowers into buying policies from them by insisting that it was a requisite to obtain the mortgage, with most unaware they could shop around and find cheaper quotes from insurance companies.

On January 20th 2017, the Spanish Government passed a Royal Decree 1/2017 that set out an extra-judicial process for “floor clause” claims. Anyone wishing to claim for overpayment of interest, set up costs and insurance premiums, has to follow the extra judicial process or face the threat of legal fees and court costs if they don't.

The decree doesn't oblige banks to pay claimants in full and when lenders can pay any settlement they deem fit, it is believed that many people will be left with no alternative but to take court action.

We have successfully managed a number of claims so far on a no win no fee basis for victims of abusive “floor clauses” and our lawyers are in no doubt that group action has been an overwhelming factor in the level of compensation achieved on their behalf.

English fluent Spanish Lawyers paid for by us will manage your case from preliminary out-of-court negotiations through to settlement, if necessary attending court as your representatives. From initial consultation to final settlement, our dedicated staff will manage your claim professionally and diligently, ensuring a swift and effective outcome.

We are repaid / paid from 20 percent of money that you reclaim, leaving you with 80 percent, that, without those lawyers acting for you would never materialise.

Related blogs

01 of 22 About Abusive mortgage clauses - Spanish Legal information

02 of 22 About The Great Spanish Mortgage Scandal!

03 of 22 About Spanish banks forced to pay billions in compensation to borrowers

04 of 22 About Making your claim - the process and cost

05 of 22 About Key information you require about your past and future borrowing from Spanish banks

06 of 22 About Dissapointment, that the floor clauses procedure leaves much to be desired

07 of 22 About Briefly, your right to reclaim

08 of 22 About Eaten alive - by abusive mortgage 'set up' costs.

09 of 22 About Floor-clauses - 'clausula suelo. - a history

10 of 22 About Lifetime Loans or Reverse Mortgages in Spain Explained

11 of 22 Advice to Struggling Mortgage Borrowers in Spain

12 of 22 A warning about Spanish Mortgage Loans: Beware of Abusive Clauses – 8th January 2012

13 of 22 An overview of Spanish Mortgage Loans: An Overview – 21st February 2012

14 of 22 About Bank Repossessions in Spain – 21st February 2014

15 of 22 About Spain's Bad Debtor’s List (‘Fichero de Morosos’) – 8th April 2014

16 of 22 About Spanish Creditors Pursuing Debts Abroad – 8th May 2014

17 of 22 Crucially Dación en Pago explained, or, How to Hand Back the Keys – 8th December 2014

18 of 22 Report about of how the European Court of Justice Slams Floor Clauses (‘Cláusulas Suelo’) – 27th December 2016

19 of 22 Warning, that buyers in Spain from the British Isles struggle to recover refunds due to them

20 of 22 Warning, that English speaking clients of Spanish Banks have been systematically cheated for years

21 of 22 Warning, that CJEU conclusively overturns the floor clauses

22 of 22 Warning, that EURIBOR - the promises at the heart of the Spanish Bank deception

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