EEOs

Spanish banks are now cross border chasing for mortgage arrears on spanish holiday homes using EEOs forcing you to sell your Uk home to pay them back the money they are owed this was reported in the Mail On Sunday today even if you are apparently a few months behind on your payments.

The Banks will now refuse to have the keys returned as mass negative equity exists they would prefer to chase the debt than have the property back It is impossible to appeal against an EEO unless you attend a hearing in Spain

Yet another miscarriage of justice cant wait for the referendum

www.ournextholiday.co.uk

 Barclays have been doing this with customers for the last couple of years. They have a dedicated team in the centre at Leeds. I think though they are there to re- negotiate the arrears rather than repossess.

Mark

 Yet another miscarriage of justice cant wait for the referendum

Sorry but can't see why this is a miscarriage of justice.  The couple you refer to took out a mortgage, haven't paid for some months and now the bank wants its money.  Would you be so outraged if a Spanish family had bought a house in UK and then left owing the bank 140 odd grand?  

The couple were stupid in the first place to take out a mortgage they couldn't afford.  Banks get enough stick as it is for writing off debts, which helped cause the current crisis, and now they are trying to get their money back they are excoriated again!

If this couple took out the big mortgage some years ago when interest rates were a lot higher and now find they can't afford it when interest rates are so low then they obviously didn't do their homework. 

It would be the same for that hypothetical Spanish family as well.  If, say, RBS took out an injunction (or EEO) then they would have to come to UK to fight it.  I wonder if they even considered a dacion de pago or if they simply pushed the keys through the letterbox and disappeared.

Maybe all of those who have had our off-plan deposits 'knowingly' stolen by the Spanish Banks should take out EEO's against them.

But I doubt the Spanish Officials would allow us to 'fast track' our claims like they are allowing the Spanish Banks to do.

One rule for the Banks and one rule for the Consumers.

 And the UK banks aren't?  There were 40,000 houses repossessed in UK last year.  Yes, I know people fall on hard times but this couple are still working and their situation hasn't changed since they over extended themselves.  Work for a bank?  Get over yourself. 

This site appears to have changed dramatically from a helpful, chatty site to a bitching session for all the ills in the Spanish legal system.  Anyone daring to point out that some people are a bit on the stupid side by not doing their sums are immediately set upon.  In this case, the banks are just doing what they are supposed to do.  Or do you think it is OK to take their money and then not bother paying it back?  People who remortgage their homes in UK to buy a holiday home should really think before they jump in.  Nothing at all to do with "unfairness" , so-called "corruption" etc.  Just the banks getting cheesed off with having so much property on their books and being castigated for looking after their money.

" In this case, the banks are just doing what they are supposed to do. "

What a shame they haven't also done what they were supposed to do with all offplan deposits i.e.place these deposits into special accounts according to the Ley 57/1968 law.

 And what's all that got to do with this couple and the EEO?  Just in case you hadn't figured it out yet, it's not everyones God given right to buy a holiday home.  They haven't been ripped off, they haven't been mis-sold anything.  They let their ambitions get in the way of common sense by taking out huge loans and are now miffed because they are being chased for money they probably didn't have in the first place.  

And in my case, I was ripped off by the robbing, lying British agents, nothing to do with the banks whatsoever.  I haven't lost money (apart from the solicitor charges to finally get my deeds) on either of my properties and have actually done quite well out of them.  But that's probably because I only borrowed what I could afford.  I would love a 5 bed mansion with massive pool in a couple of acres of ground but settled for a 3 bed town house because that was my limit.  And very happy I am here, too.

The only "notional" money I have lost is in UK because of the crashing property values.  But even that is, as I say, notional.  Just because I got less than I would have a couple of years makes me feel like I've lost money but 5 times what I paid for it is hardly losing on it.

No, it's the way it was described as another corrupt part of the system in Spain and it isn't.  It's got nothing to do with feeling sorry for anyone or not.  If you felt sorry for every individual person who has had their house repossessed then you probably wouldn't get out of bed in the morning.

"Or do you think it is OK to take their money and then not bother paying it back? "

That's exactly what the Banks have done with the majority of offplan deposits of purchasers who have had their contracts breached but are being denied the right to return of their monies as per Ley 57/68. This law was established to protect the rights of purchasers of offplan property. All offplan purchasers were supposed to have had Bank Guarantees provided by the Banks that accepted offplan deposits and their monies were supposed to have been placed in special accounts. Keith is right to suggest that there is great hypocrisy taking place here and the Banks should be made accountable. And swiftly made accountable ........

Yes, Ads.....The Banco de Espana should act swiftly and 'fast track' the accountability of the Banks & Savings Banks who, under the supervision of the Banco de Espana, ignored almost all the requirements of LEY 57/68 when accepting with off-plan deposits.

However, I suspect this will not happen as the BDE will use the excuse that they have no power to force a Bank or Savings Bank to act in accordance with LEY 57/68 - or any other law for that matter.

The Banco de Espana are the 'Supervisor of the Spanish Banking System' but they have no power to force a Bank to make a refund - even in cases where the BDE favour the consumer.

I have made it clear to the Banco de Espana that if they receive so many complaints on one issue - Bank Guarantees - then under their regulations they have an obligation to report the cases to the Ministry of Finance.  Maybe then the government will be forced to take action.

The BDE does have the power to impose a fines on financial institutions for repeated offences and to withdraw their trading licence if necessary.

It is a fact that the Banks have been negligent and lacked professional due diligence on a number of factors over the past decade.  It was the banks money that fuelled the speculation and greed.  The banks are professional entities and are supervised by regional ombudsman and the BDE.  They had a duty to act in a professional and responsible manner and to follow the laws and regulations.  They have failed on a number of counts.

Kind regards

Keith

Keith, you say "Maybe then the government will be forced to take action. "

And what if the government don't take action? Can the EU then make them (the government) accountable?

I have just read The Mail on Sunday´s article which has been sent to me by a client.

Initially and for your information please click here

The UK lawyer helping them with this issue at this stage neds to verify:

 If the enforcement  and the enforcement notification are according to Spanish Law.

If the EEO is according to the european directive 805/2004.

I am posting on this today. Give me a while to review the EU regulation on the EEO.

Best,

Maria

I wonder how all this works in reality. A mortgage is usually secured on a property, the one being purchased, unless you re- mortgage in the UK for the full amount. This is what makes the loan secured and why a charge is placed against the property being purchased so that in the case of a total loss, the insurance company will pay out to the lender first. How this transpires to allow assets to be used as security elsewhere, i'm not sure as I am not a legal eagle.

That said, UK banks are doing similar for unsecured credit card debts. A unsecured loan is just that, hence the usually higher interest rate to take into account the extra risk. Defaulters are being taken to County Court now and having charging orders placed against their properties for a unsecured debt, thus it becomes secured and at a higher rate! Thing is, when you sign up for a new card now, you have to accept this as a part of your t&c's, Halifax explained it to me last week when I applied for my Clarity card.

Mark

Markfish:

Under Spanish Law, you secure the repayment of the debt with the mortgaged house but, if any remaining amount exist, they can go against any of your assets worldwide.

The EEO makes this easier  but still this EEO procedure needs to be according to National and European Law.

By now, get this information from WIKIPEDIA

The European Enforcement Order is a method of enforcing foreign judgments within the European Union without the need of any intermediate proceedings, such as exequatur. The procedure was established by Council Regulation (EC) 805/2004 of 21 April 2004 and comes into force on 21 October 2005. The EEO is applicable only in relation to uncontested claims. Uncontested claims are defined in Article 3 of the regulation as one of the following:

1. the debtor has expressly agreed to it by admission or by means of a settlement which has been approved by a court or concluded before a court in the course of proceedings; or
2. the debtor has never objected to it, in compliance with the relevant procedural requirements under the law of the Member State of origin (where judgment was given or the claim arose); or
3. after initial objection, the debtor has never appeared or been represented at court, provided that such conduct amounts to a tacit admission of the claim or of the facts alleged by the creditor under the law of the Member State of origin; or
4. the debtor has expressly agreed to it in an “authentic instrument” i.e. a document whose contents and signature have been ‘authenticated’ by a public authority.

The regulation provides a mechanism whereby if the defendant objects to the use of the EEO, the matter can become a Court case which can then be defended.

The EEO can be only be used in civil or commercial matters and specifically does not apply to the status or legal capacity of natural persons, rights in property arising out of a matrimonial relationship, wills and succession; bankruptcy, proceedings relating to the winding-up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings; social security; arbitration.

It won't take long for these banks to realise UK legal system is fast and efficient.

The regulation provides a mechanism whereby if the defendant objects to the use of the EEO, the matter can become a Court case which can then be defended.

As I understand it, if the EEO is objected to or defended, the case then has to be remitted to the courts in the Defendant's country of residence.

Norm de Plume,

Let´s use an example:

If a Spanish Court, once a debt is uncontested in Spain and the procedure and notification on the debt has been verified, issues an EEO ( which also needs to be done according to Law: the European regulation), the recipient Court  in the UK,where the debtor lives or have assets, starts the corresponding execution/enforcement procedure.

The UK Lawyer can request the UK Courts to deny, suspend or limit the execution under determined conditions.