Floor-clauses - 'clausula suelo. - a history

by Spanish Lawyer - as credited
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Introductory note: For a clause to be ruled “Abusive” under Spanish law, it must inflict harm on the consumer and benefit the professional who drafted the contract.

An clause can only be declared to be an “Abusive Clause” by a Judge.

Variable-rate mortgages or Tracker mortgages are common in most countries and are designed to protect both the lender and borrower from unpredictable volatility by reflecting the cost to the lender of borrowing on the credit markets.

If interest rates are high then the cost to borrow is high. Conversely, if interest rates fall, the cost to borrow falls.

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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.

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Making your claim - the process and cost (+Start your claim)

by Editorial team
Hits: 250

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.

More info