Spain has a legal structure governing the banking and financial services sector. This is a body of administrative law and the legal framework incorporates rules and regulations on the control and financing of banks. An important part of the legal framework is the Ley Hipotecaria. This is the Mortgage and Land Law incorporating the registration of property and inscription and execution of mortgages. There are also laws which protect consumers from abusive clauses.
Consumers have had a number of issues with Spanish banks in recent years such as the clausula de suelo – a floor or base rate clause – Some banks used to peg interest rates on mortgages above the permitted percentage over Euribor. Contact us to assist with the new administrative system for reclaiming this money promptly from your bank.
In some cases the sums involved have not been great but some consumers have been able to recover thousands from their bank once the clause is challenged. We always try to negotiate with the banks to eliminate this clause and to repay without recourse to the courts. However if it is necessary to go to court we look to recover costs and can make the claim with documentary evidence of your payments.
There have been a number of other financial products and services provided by banks which have caused losses such as currency exchange mortgages; sale of preferential shares and illegal mortgage foreclosures. Some claims can allow for a particular mortgage clause to be annulled whilst continuing with the financing if that is the best route to take.
Where clients are not able to continue with a mortgage they can surrender the property directly to the bank – dación en pago – if that is the best option and avoids being pursued for the negative equity. If a mortgage foreclosure is commenced on your principal residence the bank have to negotiate a solution and we can assist with this.
We have a specialist in all aspects of banking law with experience in settling claims both by negotiation and by court action. For more information or a private consultation call us on 952 527014 or email on [email protected]