Action against the Bank

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20 May 2010 12:00 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 forum posts Send private message

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Main ground of Law 57/68 is the protection of money  advanced by individuals before construction work begins or during it, in many cases the savings of a lifetime.

The actual preamble or exposicion de motivos of the said Law establishes that all the "abuses in this type of businesses have made as necessary the establishment of general preventive rules which will guarantee both the real and effective application of money advanced by purchasers and prospective customers to the building of the house and to the refund in the event that the building does not take effect".
One of the preventive, general, inalienable obligations that the Law established was for banks or savings banks,  where money was paid to by buyers, to secure the establishment of Bank Guarantees or insurance UNDER THEIR LIABILITY. Banks were therefore here  established as guardians of legality.

There are therefore two responsibilities of Banks and Savings Banks:

1. - Common due diligence and professional duty.

2. - Special obligation of provision 1.2 of Law 57/68.
 
This means that if you were not provided a Bank Guarantee according to Law 57/68, you might have an action against the Bank where you placed your deposits

 

 


_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria


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21 May 2010 9:44 PM by Donal79 Star rating. 15 forum posts Send private message

Hi Maria,

I have claimed on a bank guarantee / insurance as I am entitled to do under Law 57/68, and the insurance company has refused to pay my claim as the developer is in administration.  My lawyer has advised me to sue the insurance company to enforce my claim, and we are waiting for the case to be heard in court.  It appears to me that the Spanish legal system is very slow, as my claim was lodged late last year.  My lawyer cannot even advise when my case will be heard, a situation that I find very frustrating.

I noted with interest your Legal tip in relation to Ley 13/2009, as this suggested that the legal system is being re-organised to speed up and improve the legal process for citizens.  My question is whether you have confidence that the changes will be made quickly, and whether there will be a significant improvement in dealing with legal cases?

Best regards,

Donal79




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