mortgage "floor" clause

[calculator]

The ECJ have made their decision...........

All monies affected by the "floor" (suelo) clause must be reimbursed by the banks. Spain had already agreed going back to 2013. Now they must go to the beginning of the mortgage.

The cost to banks is about 6 billion euros. The public will pay for it in increased charges.

Bad decision in my view. As it implies that no brain nor intelligence is required when signing a contract. We're becoming more like Cuba everyday.

[Riverman]

I disagree. If you need a mortgage and all lenders include the same clause then you just have to bite the bullet and sign on the dotted line.

[raye]

https://www.ft.com/content/8e5fb9f2-c760-11e6-8f29-9445cac8966f

[fifi]

In 2013 it was estimated that approximately 9000 mortgages in Fuerteventura were affected by this overcharge. Great news. 

http://mobile.reuters.com/article/idUSE8N1CN00E?feedType=RSS&feedName=governmentFilingsNews

[fifi]

If you keep an eye on the ADICAE website you will find out how to reclaim your money . I had a quick peek and they have organised meetings in Las Palmas so there should be an update soon. http://afectadosclausulasuelo.org/

[TheCooler]

The ECJ have made their decision...........

All monies affected by the "floor" (suelo) clause must be reimbursed by the banks. Spain had already agreed going back to 2013. Now they must go to the beginning of the mortgage.

The cost to banks is about 6 billion euros. The public will pay for it in increased charges.

Bad decision in my view. As it implies that no brain nor intelligence is required when signing a contract. We're becoming more like Cuba everyday.

I certainly understood the clause when i took out my mortgage.what i did not realise was that it was illegal, and shouldn't be included.Am i now wrong to expect to be re-imbursed for the banks wrong doing? No doubt you believe that all those that have claimed back PPI were foolish as well?

[Johnrgby2]

The ECJ have made their decision...........



Bad decision in my view. As it implies that no brain nor intelligence is required when signing a contract. We're becoming more like Cuba everyday.

How does it imply that, if you believe any where near 90% of people scrutinise all the small print in contracts what ever they are,you are living in a fantasy.
Further why is it a bad decision? The Banks operated illegally, and have been found out and it is going to cost them

[jill tie]

Does anyone have any idea what claims could be worth?
I realise there are a lot of factors and each would be different. 
In the Uk if you are owed monies you can charge 8% interest per year owed
does the same apply to Spain?   Ive looked on-line and can't find anything
definitive.  Thanks fifi I will keep an eye on the ADICAE website.

[decho]

I hope the Spanish Givernment have enough money to rescue these banks!

[Ivemovedon]

With regard to the original post I find it amazing how the new culture of blame the victim rather than the perpetrator is now so prevalent. Truly astonishing.

[jill tie]

I hope the Spanish Givernment have enough money to rescue these banks!

Im not sure they do have enough money.  I can see them offering deals to reduce your mortgage rather than paying you a lump sum.   That way they don't need to find the cash

[fifi]

Does anyone have any idea what claims could be worth?
I realise there are a lot of factors and each would be different. 
In the Uk if you are owed monies you can charge 8% interest per year owed
does the same apply to Spain?   Ive looked on-line and can't find anything
definitive.  Thanks fifi I will keep an eye on the ADICAE website.
       .........................

I think it was up to 3000 per year Jill but would need to check my posts on the old Forum if they are still available.

[scorpio1966]

Hi,
not heard of or used ADICAE before , is it a case of registering and following info on the sight.
we have had a mortgage with solbank for 7 years approx so wondering what this will mean to us
thanks

[fifi]

ADICAE are the Consumer organisation for financial institutions. When all of this came out around 2012/2013 they were representing groups of five or more.
If you look on the banking section on the Forum you can read the old threads. I have not kept up to date with all of it but have read on the ADICAE  site that you are not to accept any offer from the Banks before getting it checked out first because it can make your claim invalid. There was a meeting organised in Las Palmas on 28th December as far as I can remember so hopefully they will post details, or you could make contact yourself and see what is happening.

[fifi]

https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fafectadosclausulasuelo.org%2Fmobile%2Fsimulador-datos-pruebas.php%3Faction%3Dform%26result%3Doff%26opcion%3D1&edit-text=&act=url

The link above shows how to estimate the amount due to be repaid to you.

[jill tie]

https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fafectadosclausulasuelo.org%2Fmobile%2Fsimulador-datos-pruebas.php%3Faction%3Dform%26result%3Doff%26opcion%3D1&edit-text=&act=url

The link above shows how to estimate the amount due to be repaid to you.

Hi Fifi,

Thanks for the form,  but it doesn't seem to work for me.  Does it give you and instant result?
keep saying form sent? (tried 3 times)

[Séan J.]

I can't get it to work 

[fifi]

I didnt try it myself. Does this Spanish one work? http://afectadosclausulasuelo.org/simulador-datos.php?action=form&result=off


News articles .... https://translate.googleusercontent.com/translate_c?act=url&depth=1&hl=en&ie=UTF8&prev=_t&rurl=translate.google.com&sl=auto&sp=nmt3&tl=en&u=http://www.elperiodico.com/es/temas/clausula-suelo-11690&usg=ALkJrhhpuOs7ixqvonVMfVrDDOBO4Q3qkA

[fifi]

Another good article here. http://www.spanishpropertyinsight.com/2016/12/24/boomtime-mortgage-borrowers-get-thousands-back-european-court-justice-opens-floodgates-claims-banks-abusive-mortgage-clauses/?utm_source=Spanish+Property+Insight+News+Bulletin&utm_campaign=631a105127-SPI_NB311216&utm_medium=email&utm_term=0_5c1bbc37e8-631a105127-137967545

[Snowdrop]

It looks like people will have to engage a lawyer to make any claims.  The courts should have directed the banks to refund all affected customers directly!!

[fifi]

Even more money to be reimbursed now it seems.

http://www.spanishpropertyinsight.com/2017/01/15/banks-now-also-hook-mortgage-set-costs/?utm_source=Spanish+Property+Insight+News+Bulletin&utm_campaign=3de6079a39-SPI_NB150117&utm_medium=email&utm_term=0_5c1bbc37e8-3de6079a39-137967545

[scorpio1966]

Hi ,
has anyone made any progress on reclaiming any money owed by the bank ?
Its strange but last year i got a letter out of the blue from solbank saying they would
fix my mortgage at the current rate for the remaining term of the mortgage.
i wonder if my claim for the floor clause would of been void if i had of accepted it .?
scorpio

[Archer]

It's been in the news this week. Looks like they may make banks deal with it automatically. Hold fire and see what comes of the debate.

[fifi]

I know someone who successfully claimed Scorpio. According to ADICAE your claim would have been rejected if you accepted . They recommended that the Banks offers should not be accepted for that reason.

                               .......................


About 1.5 million Spanish bank customers who were sold mortgages are entitled to seek their money back in the courts

The Spanish government is to give banks three months to reach agreements with customers who were sold mortgages with an interest rate floor or face a wave of legal claims as well as a potential multi-billion euro hit.

Economy Minister Luis de Guindos said the settlement proceedings would be free of charge for customers.

These home loans had an interest rate that could not fall below a certain level, which meant customers missed out when rates dropped below that floor.

In December, the European Court of Justice said the banks must repay customers over â,¬4 billion in relation to these mortgages, overturning a Spanish court ruling that had put a cap on what banks should pay.

About 1.5 million customers who were sold those mortgages are now entitled to seek their money back in the courts.

This could potentially create a new legal headache for Spanish banks which are recovering from a crisis that has cut their numbers from around 50 four years ago to a dozen now.

The banks are expected to compensate customers for what they lost.

But most banks want to avoid making a cash payment upfront and instead may offer an interest cut on the mortgages to spread the cost over a longer period, banking industry sources said.

Under the scheme being discussed by the centre-right government and the opposition socialists, it would be up to the bank to get in touch with customers and offer them a settlement.

If after three months no deal has been reached, customers would then still be able to file a complaint.

The new regulation is due to be approved tomorrow.

https://www.rte.ie/news/business/2017/0119/846075-spain-to-give-banks-3-months-to-fix-mortgage-crisi/

[Snowdrop]

Did anyone understand what was on the news this evening about this issueâ"

[jill tie]

Did anyone understand what was on the news this evening about this issueâ"

What was on the news?

[Snowdrop]

Ha ha Jill Tie - I don't know Cos I didn't understand the spanish 😂

[Archer]

Latest update: Bankia announced that they will make refunds to all their customers, swiftly. Just visit your branch from Feb 03. They will not await the final court ruling. 
I guess the others will follow their lead.

[jill tie]

I still haven't got a clue what this may be worth.  Has anyone had any sort of figure and know how it was worked out?

[F1REFLY999]

Out of curiosity...what interest rate are people currently being charged from their banks?