CJEU conclusively overturns the floor clauses (+Start your claim)

by Legal editorial team
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The European High Court (CJEU) has recognised the total retroactivity of the floor clauses, meaning Spain's banks must repay all monies they have overcharged to their customers.

The Court of Justice of the European Union has issued its final judgement concerning land clauses. Thus forcing banks to repay the money overcharged to customers who had these types of clauses included in their mortgage contracts.

This ruling contradicts the opinion published last July by the Advocate General of the Court of Justice, Paolo Mengozzi, supporting the Spanish Supreme Court’s ruling for Banks to return the amounts collected only after May 2013.

The European High Court has avoided, with its judgement, dealing a substantial blow to the basic principals of law.  The CJEU has ordered total retrspectiveness of refunds, ruling against the opinion of Paolo Mengozzi.

Claims cannot be limited in time.  Not only applying since May 2013, but since the contract was signed. As a result the banks involved will have to repay more than 3 million customers the amounts they have overpaid.   This is anticipated to involve between  5 and 7,000,000 (5 - 7 billion) euros.

This is a blow to Spanish banking still recovering from the bailout suffered in 2008.

The CJEU has protected the much greater interest of their customers against the power of the banks, that Paolo Mengozzi was seeking to safeguard.

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