Mortgage lenders ordered to refund overpaid interest

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30 Mar 2015 9:22 PM by Shirl.G Star rating. 3 posts Send private message

There is an article saying that banks who overcharged mortgage holders through so called 'minimum interest clauses' have been ordered to refund the difference dating back to May 9th 2013. Has anyone tried to get their overpaid interest back. I have been to my bank but they have said that I wont get it back as its more involved than whats printed in the papers, as I expected them to say.


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30 Mar 2015 9:54 PM by hughjardon Star rating in Jaywick Sands. 418 posts Send private message

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Hi Shirl

Very interesting can you post the article please 

Regards Hugh



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Done the Spain thing Happier in the UK



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31 Mar 2015 11:51 AM by hosilverlining Star rating in Property owner in Gr.... 173 posts Send private message

I believe this relates to the infamous Clausulas Suelo or 'Floor Clauses' (sometimes translated as 'Soil Clauses') which if included in your mortgage contract kept interest at a minimum of something around 4% and a maximum of 15%.  These clauses meant that the bank always benefits while the customer never will.

The Supreme Court in Spain ruled on 9th May 2013 against certain banks and told them to remove these abusive clauses.  Our interest with Cajamar, one of the banks ruled against, was reduced somewhere around August that year and we received a refund back to 9th May.  However the ruling did not include anything definite about retroactivity back to the start date of the mortgage.

There are countless court cases about these clauses against banks not included in the original Supreme Court ruling.  In the majority the clauses are annulled by the court.  However the question of retroactivity to include the period between the start date of the mortgage and 9th May 2013 has never been clearly sorted out, and the Supreme Court recently declined to rule definitively on this point.  So if your mortgage has a Floor Clause it should be a good bet to go to court to have it removed, but whether a retroactive refund is awarded will depend on which court deals with your case.  Many Audiencias (provincial courts) especially in the north of Spain have ruled for retroactive refunds but some have not, including the Audiencia in Granada where we have our mortgage. So we benefited from the Supreme Court ruling 9th May 2013 but can't claim the overpayments back from before this date.

Seems to be a lottery given that the provincial courts don't seem to have to take notice of judgements elsewhere.  I would recommend talking to a good lawyer who has had success with these cases.  Maria may be able to help?

Plenty of articles about these cases posted on Facebook but the guys who won the landmark case re Bank Guarantees.  Most in Spanish.  Try the link below, or Google Floor Clauses in Spain.  I just found this article

http://www.onthepulse.es/finance-business/which-spanish-banks-still-apply-floor-clauses-their-mortgages

and this is the Facebook page for Spanish Off Plan Property Bank Guarantees.

https://www.facebook.com/pages/Spanish-Off-Plan-Property-Bank-Guarantee-Abuse-LEY-5768/134524803233863?fref=ts





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31 Mar 2015 9:18 PM by Shirl.G Star rating. 3 posts Send private message

Many thanks for the info.


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14 Apr 2015 2:42 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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Legal tip 1122. Steps for Floor Clause removing 
10 March 2014 @ 13:38 
 

1) Negotiation with your own Bank branch. Better is assisted by a lawyer/legal advisor. There are very low chances that you get floor clause removing/ refund of undue payments at this stage

2) Complain to Customer Service Bank. You need to discuss on lack of transparency and lack of reciprocity. Revise it under the criteria of Law 41/ 2007

3) After two months, if claim has not be responded by Customers Service ( 2 months wait), you need to decide to either go to Bank of Spain or Judicial Courts. 



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23 Nov 2016 10:52 PM by MikeandHelen Star rating. 193 posts Send private message

 

Does anybody have any updates on this?





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24 Nov 2016 7:10 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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Expecting European Court decision on what interests ( period) have to be paid. All indicates it will be issued before the end of the current year



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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24 Nov 2016 4:16 PM by Shirl.G Star rating. 3 posts Send private message

I won my case with Banco Sabadell and anyone out there that has the 'ceiling clause' on their mortgage, go ahead and sue the bank. You cant loose.

 





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