CAM BANK REFUSING TO PAY INTEREST ON BANK GUARANTEES

Hi,

I  have bank guarantees for plots on phases 3 and 4 which I purchased five years ago through Aramis. My solicitor has been going through the process of claiming my money back with the CAM bank over the past couple of months.

On Friday however, he was told that the bank will not add any interest to the amounts shown on the guarantees and this must be claimed back from the developer.

Reading previous posts on here from people who have had their refunds already, it seems that the bank paid interest on those occasions.  In fact, I  thought it was a legal requirement for the bank to pay interest on bank guarantees.

Can anyone else who is going through the BG refund process at the moment, tell me what the bank are telling their solicitors regarding interest please.

Many thanks,

Jeff

Jeff

You are very lucky to have Bank Guarantees on Phases 3 and 4.  We have purchased on Phase 4 and do not have the legally required Bank Guarantees.  When we took this matter up with CAM in July 2008 they stated in writing to us that we had purchased on a Phase that was not being funded by CAM.

CAM were the sole financial entity funding Las Higuericas Finca Parcs.  It is very strange how CAM can say they are not funding a particular Phase on which they have issued several Bank Guarantees!!

Furthermore in all the promotional material and advertising for Las Higuericas Finca Parcs, including a full page advert in the Easyjet Magazine, the CAM name and Logo were used to entice buyers to the development.  All the adverts clearly stated that a Bank Guarantee was included.  Nowhere did it state that Bank Guarantees would only be issued on Phases 1 & 2.

According to Spanish Law, in particular, LEY 57/68 it is a legal requirement for CAM to pay interest on the amounts covered by the Bank Guarantees.

Here is the relevant clause of LEY 57 / 1968

Primera - Garantizar la devolucion de las cantidades entregadas mas el seis por ciento de interes anual, mediante contrato de seguro otorgado con Entidad aseguradora inscrita y autorizada en el Registro de la Subdireccion General de Seguros o por aval solidario prestado por Entidad inscrita en el Registro de Bancos y Banqueros, o Caja de Ahorros, para el caso de que la construccion no se inicie o no llegue a buen fin por cualquier causa en el plazo convenido.

First - To ensure the return of the payments made plus six percent annual interest, by means of Contract of Insurance granted with an Insurance Entity inscribed and authorized in the Record of the General Sub-department of Insurers or by means of a Bank Guarantee issued by an Entity inscribed in the Record of Banks and Bankers or Savings Banks, if the construction does not commence or complete for any reason by the agreed deadline.

I think your Lawyer should demand the addition of Legal Interest.

I am sure Maria will have a view on this.

Kind regards

Keith

Many thanks for the very useful reply Keith.

I've sent the extract from Spanish law to my lawyer already.

Sorry to hear you're one of the unfortunate ones without a BG. I can only assume I have them because I became involved at such an early stage. I know as time went on they became more scarce.

I hope the new refunds process works out for you and everyone in the your position.

Best wishes,

Jeff

Hi Jeff

Yes I too hope for everyones sake that the Refunds Process works out!!

I know of several purchasers, also Aramis clients, who reserved in 2004 and 2005 and never received the legally required Bank Guarantees.

It is a shocking illegal mess and it seems that CAM Bank are unwilling to do anything to sort out the problems.

Kind regards

Keith

 

Interests are included, whatever they want it or not. If they refuse to pay them at the moment of the Bank Guarantee honouring, you will have a declarative action against the bank for this, with legal costs very likely to be imposed on them.

Hi Maria,

Many thanks for your reply which comes as a refief. I wiil ak my lawyer to make a demand for the interest.

Can you tell me if the interest starts from the date of the original payments or the date the bank guarantees were first issued please?

Thanks again,

Jeff

Day you paid.

M

That's fantastic Maria -  Thank you.

You're a credit to your profession.

Kind regards,

Jeff

Has any-one who has used the services of Pablo of BP Spanish Lawyers received a refund of their deposit as he claims ?.

If any-one has recently been in contact with Pablo of BP Spanish Lawyers please private mesage me 

Pablo is a very hard man to get hold of at the moment, if anyone does know how to contact him please let me know.

Would anyone who as used or is stil using Pablo Sebastian of BP Spanish Lawyers to represent you to secure your bank gaurantee's send me a private message.

Ignoring this message could seriously damage your wealth!, any-one who is using the services of Pablo of BP Spanish Lawyers, must private message me as soon as you can.

Hello

I bought off plan in 2005, still being built, slow build, would like to get money back and have what I think is a valid Bank Guarantee.  Would like to start proceedings with Bank Guarantees however would value recommendations for solicitors and how to proceed.

Thanks

David

David

You are right - it 'was' a slow build.  But it is not 'still being built'!!

The developer, Cleyton GES SL, abandoned the project and all the purchasers in May 2009.

If you have a Bank Guarantee from CAM Bank - you are lucky because not all of us received the legally required Bank Guarantees.

I would begin the process of executing your Bank Guarantee as soon as possible.

Kind regards

Keith