Costa Luz - Floor Clause

We’re excited to report some good news for Spanish mortgage holders fighting against banks because of abusive floor clauses in their loan contracts. According to the latest judgement from the European Court of Justice, you may now claim the full amount from the date of signing the contract.

This landmark sentence overrides the Spanish Supreme Court decision and allows mortgage holders to claim compensation for all the money paid in the unfair concept of floor clauses (cláusula suelo in Spanish).

At Costaluz Lawyers, we welcome this latest ruling and believe it marks another step towards fair and just contracts for mortgages in Spain.

Full retroactivity for floor clauses

On May 17th, the European Court of Justice confirmed full retroactivity for claims on amounts paid for floor clauses. The latest ruling ratifies the ECJ’s previous sentence made in December last year.

It states that money paid unduly for floor clauses in Spanish mortgage loans may now be claimed from the date the contract was signed. In practical terms, this means you can claim for amounts paid for the duration of your mortgage.

Find out more about mortgage claims in Spain

Spanish sentence no longer applies

The ECJ sentence overrules the Spanish Supreme Court’s decision in 2013 to not apply retroactivity, but rather to allow claims from the date of a court decision. EU law and sentences take precedence over Spanish law and sentences and as a result, Spain must now abide by the latest ECJ decision.

The ECJ sentence also means that if you are already in the process of claiming a refund of money paid for a floor clause, you may now claim for the full period.

Floor clauses in Spanish mortgages

Including a floor clause in Spanish mortgage contracts was, until recently, a common practice among banks. The clause included an interest rate limit, effectively capping any benefit from a decrease in the Euribor interest rate. As a result of the clause, loan payments for thousands of mortgage holders in Spain did not go down in tandem with the Euribor.

The floor clause has since been declared abusive and unfair to the consumer. Consequently, Spanish banks have received an avalanche of claims for compensation for payments made in excess of the Euribor rate.

The latest ECJ sentence extends this compensation to cover the entire length of the mortgage loan. In some cases, the claim will cover many more years and entitle the mortgage owner to considerably more compensation.

Find out how to get help with Spanish mortgages

Help with claiming against abusive clauses in Spanish mortgages

At Costaluz Lawyers, we are pioneers in fighting for consumer rights in Spain, particularly against banks. We, therefore, welcome this latest sentence and see it as an important step toward better consumer retribution.

If your Spanish mortgage includes a floor clause or any other clause that may be considered abusive, get in touch with our legal team now. We will be more than happy to provide expert advice on how to proceed with your claim for compensation.

Maria Luisa Castro

Director and Founder
María founded CostaLuz Lawyers in 2006 and is the Firm’s Director. María is registered Lawyer number 2745 of the Cadiz Bar Association and is licensed to practice in all areas of law throughout Spain. Working closely with her team, María has developed the firm into one of the most highly regarded and trusted Spanish Law Firms acting for English-speaking clients with legal problems in Spain. We’re here to help. Contact us today for a free no-obligation consultation.
 

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