European Court of Justice Slams Floor Clauses (‘Cláusulas Suelo’) 27th December 2016

by Spanish Lawyer - as credited
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For those seeking a better understanding about Spanish Mortgages (beyond the relatively simple reclaim process in respect of overpaid interest) we are grateful for the following article copied from the legal web site of:

Written by Raymundo Larraín Nesbitt
Lawyer – Abogado - 27th December 2016

European Court of Justice Slams Floor Clauses (‘Cláusulas Suelo’) – 27th December 2016.

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Spanish banks forced to pay billions in compensation to borrowers (+Start your claim)

by Legal editorial team
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Millions of Spanish mortgage holders, including thousands of Brits, could be due for a massive windfall as a result of judgements passed by the European Court of Justice and the Spanish Supreme Court, which found the Spanish banks treatment of their customers was “abusive”.

The “floor clause” (clausula suelo) which banks added to the small print of up to 4million mortgages and was common in loans taken out between 2007 and 2009, set a limit on the minimum interest rate a lender could charge, (around 3%), so regardless of how low the Euribor base rate fell, borrowers continued to pay interest at the fixed minimum rate, despite having variable-rate mortgages.

Put simply, most borrowers with illegal floor clauses are paying too much.

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Euribor - the promise at the heart of the Spanish Bank deception (+Start your claim)

by Legal editorial team
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Euribor is short for Euro Interbank Offered Rate. Euribor and LIBOR are comparable base rates. Euribor is the average interbank interest rate at which European banks are prepared to lend to one another.

LIBOR is the average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another.

Mortgage and loan interest rates are specified in terms such as '2 points above Euribor'.

It is that phrase that has disguised the deception that is at the heart of the Spanish Bank scandal, and your claim for a return of overpayments made for years.

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