Spanish bank ordered to compensate client who was ‘unfairly’ blacklisted

Scale, judge and gavel with hands of man in office for lawyer

The Spanish Supreme Court has recently ruled against Unicaja bank for having wrongly blacklisted a client in what it considered a violation of their rights to ‘personal honour’ and data protection.

As a result of the ruling, the Spanish bank has been ordered to remove the client from the Defaulters’ Register and pay 5,000 euros in damages, plus interest, for this error.

What is the Defaulters’ Register?

This client took the bank to court after finding that he had been wrongly blacklisted – which is to say he was placed on the Defaulters’ Register.

Banks such as Unicaja maintain this list to monitor individuals and companies with outstanding debts. This information plays a vital role in banks’ decisions regarding loan approvals and credit extensions.

However, being inaccurately included in this register can be a nightmarish experience. It has the potential to seriously damage an individual’s financial credibility, resulting in significant consequences like credit card rejections, difficulties in selling assets such as cars, and obstacles in obtaining public loans.

A long-standing legal battle

The saga began when the client challenged his wrongful inclusion on the Defaulters’ Register in the Court of First Instance in La Carolina (Jaén). He claimed that Unicaja violated his rights to personal honour and data protection.

The court initially sided with Unicaja, dismissing the case. However, the Provincial Court of Jaén saw things differently in the appeal, recognising the client’s right to honour had been violated.

While the Provincial Court ordered Unicaja to remove the client’s name from the register, it did not agree to compensate him for the damages suffered.

Supreme Court steps in

As a result, the case was escalated to the Supreme Court, which re-examined the situation. The justices acknowledged that if a person’s honour is violated, they deserve compensation. They emphasised the importance of considering the widespread impact of being listed as a defaulter and the stress involved in rectifying such errors.

Finally, the Supreme Court delivered justice. They ruled against Unicaja, ordering the bank to pay 5,000 euros in compensation, plus interest, as laid out in Article 576 of the Civil Procedure Law.

CostaLuz Lawyers, experts in financial litigation

If you require expert legal advice or representation in matters related to financial litigations or consumer rights, at Costaluz Lawyers we’re dedicated to providing expert legal guidance and representation.

If you need assistance or have any questions regarding banks and your entitlements, feel free to contact us.

Our team of experienced legal professionals is here to guide you through every step of the process and ensure that your rights are protected.

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, initial legal orientation.

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