We are very happy to share with you the last agreement we have recently reached on behalf of a client.
Our client had Spanish mortgages which contained an abusive clause.
She has been refunded 29,000 Euro for the unfair and excessive interest she was charged due to a “floor clause”. Her floor clause has been declared null and void. And the agreement we have reached with the bank also includes the removal of the floor clause from her mortgage. No Court proceedings have been needed in this case.
Some of you will recall that some Spanish mortgages signed in the last 15 years contained “floor clauses”. These are clauses that Spanish Courts first, and the CJEU later, declared null and void because of their “lack of transparency”. Also “the failure to inform customers adequately” when they signed the mortgage deed was declared abusive.
These clauses are known as a “cláusula suelo”. These clauses were subject to a minimum monthly payment even if the interest rate, which usually has a variable rate linked to the Euribor, is negative.
If you bought a Property in Spain during the property boom (2000-2008) you were probably paying the appropriate interest.
However, the interest rates were quite low after the recession. Those who had a “clausula suelo” on their mortgages have been paying an unfair and excessive interest which they can probably claim back.
Obviously, there are some exceptions depending on the mortgage holder’s profiles or depending on the specific circumstances of each case. But what is clear is that if you signed a mortgage in Spain during the property bubble you could have the right to claim some money back.
Now banks are more conscious of the need to reach agreements and refund the money paid under those null clauses.
We strongly recommend contacting a Spanish lawyer for advice. They will analyse your mortgage in detail and inform you if it contains a “clausula suelo”. Also, they will see if you have the right to ask for a refund. Last but not least a Spanish Lawyer will deal with your Bank to ask for the refund or to negotiate a settlement.
This article was also published at Liverpool Law Society monthly magazine.