Steps for Claims on Floor Clauses in Mortgage contracts

Westport.  

Im reading this as the bank insist you pay the exact amount every month that you always did, but reduce the time in which the mortgage is paid off.

is this part of a clause they have in your mortgage?   I was wondering if a clause also exists in which you can pay off capital and keep the same term, to reduce the monthly payments.  That seems more helpful to SOME people in some difficulty.

Are there things like CAB or similar organisations in Spain that assist people in these difficulties at all?  

Hi Brian

Yes, I decided to reduce the term of the mortgage so my payments stay the same but the mortgage will be paid off quicker and the bank makes less interest from you. She was surprised when I said I wanted to do it this way, as she said most people do it to reduce their payments. Obviously everyones mortgage conditions are different. I can also payoff an extra 25% of the balance each year without penalty. Best to phone your bank to ask what options you have. 

I'm sure there are organisations to help you in Spain, but I have no idea of their name. Maybe google it. If you have had your clause money refunded and you want to use it to reduce your mortgage, either in payments or the term, phone your bank first before doing so. If you can afford it, reduce the term.

Thanks.  That should be really useful information Westport 

Westport you are a star.... great practical advice being given here.

I really hope this helps those who have taken out interest-only mortgages too and encourages them to discuss more flexible options with their Banks as a better way of moving forward.

Dear Maria,

Is this true "I understand the Courts are grinding to a standstill under the weight of claims being filed, 16000 a month I hear."?

Does this imply that the extrajudicial route for claims is not working as intended, or is this figure of 16000 claims a month not representative of the true  numbers of claims now reaching the courts?

If these figures are realistic then are law firms on behalf of their client base now placing the impact from this lack of resourcing on OFFICIAL RECORD, and reporting this to the relevant legal bodies who in turn should be calling upon the Government to provide adequate admimistrative and, where applicable,  judicial resources to cope with the backlog of cases?

Is this failure in Spain in effect compromising the rule of law which makes direct reference for adequate resources to be made available so as to ensure and not compromise the enforcement of  timely justice?

And in the interests of transparency is it now essential that all law firms adequately forewarn clients of this eventuality and suggest and encourage clients to also place this on official record by contacting their MEPs  ( in the case of British clients via www.writetothem.com) so that this will double the exposure of non adherence to the rule of law in Spain with a view to proactively getting this major problem resolved?

I have to ask the question, how bad does this have to get before the reporting mechanisms in place to protect are used to their full potential in Spain?

Likewise, if the extrajudicial route to justice is not working, is this also being reported and placed on record in order to re-evaluate this additional pressure on an already overloaded justice system?

Don't the legal profession in Spain as part of their due diligence have to take some responsibility to report back their findings in a far more consistent and proactive fashion when routes to justice are being significantly compromised in this manner?

I also have to ask the question are some Banks now PURPOSEFULLY being obstructive to this extrajudicial route intended to avoid lengthy court action with all the subsequent consequences? Is it time to name and shame these Banks and what procedures are currently in place for the Bank of Spain to regulate against abuse, wherever it may arise?

This message was last edited by ads on 04/11/2017.

This message was last edited by ads on 05/11/2017.

Ads,

Difficult matter I think our government needs to solve the sooner the better. Banks are ignoring requests out of Courts and unfairly loading our Courts. Courts in charge of Floor Clause cases received 57 thousand of them within the last tree months.

Maria,

Under this circumstance relating to exacerbating an already overloaded justice system, (born from Banks now unfairly ignoring out of court procedures), is there any opportunity for lawyers, on behalf of ALL their clients compromised by this ongoing scenario, to collectively bring this abusive behaviour to the attention of the Bank of Spain, the Spanish Government and the European Commission, with a view to subjecting these Banks to swift financial  penalties to act as adequate detterent in the interim?

Surely this behaviour on the part of Banks that is impacting the rule of law can't continue indefinitely unregulated in this manner can it?

The banks are in effect making a mockery of the Spanish Justice system and we are all, (lawyers, court administrators, judges and clients alike) being compromised by their actions.