Spanish Mortgage Mis-selling
Following the financial crash of 2008 the ECB interest rate fell from 3.75% to 0.05%. Borrowers who had purchased property in Spain would normally have expected to have enjoyed the benefit of these low rates.
Several Spanish banks failed to pass on the low rates to their customers pointing to a term in their loan which set a floor or ‘Suelos’ below which the interest rate would not fall. Many borrowers suffered as a result.
Have You Been Subject to Spanish Mortgage Mis-selling…
In 2013 interest rate floors in Spanish mortgages were successfully challenged in the Spanish Supreme court however the court also held that any compensation due to consumers need not be backdated.
In December 2016, the European Court of Justice overturned the Supreme Court’s decision to limit backdated compensation. The European Court has now held that banks should repay overpaid interest from the date of the sale of the loan until the date of the complaint.
This could result in substantial compensation for affected borrowers many of whom live in the United Kingdom.
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The Spanish banks have set aside €4bn euros to compensate customers. If you have or had a loan with BBVA, Banco Popular, Banco Sabadell, Caixabank, Liberbank and other Spanish regional banks then you may have a claim.
Mortgages which contain interest rate floors are complex products and specialist advice should be sought at an early stage. There are time limits for claiming, particularly if you have repaid the loan so it is important to instruct a solicitor quickly.
Some customers who have attempted to settle their claims without using a solicitor have been offered very low levels of compensation by the banks.
Our advice is that if you believe you have a claim then you should seek legal assistance with that claim to ensure that you make a full recovery from the bank.
If you have a potential claim against the Spanish banks please contact Paul Fairbridge for an informal discussion and initial no obligation review.
Claims against the Spanish banks for mortgage mis-selling can be made on a no win no fee basis.
Paul can be contacted on email@example.com alternatively contact John Carruthers on firstname.lastname@example.org. Both Paul and John can be contacted at 0141 332 0915.
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