ILLEGAL CLAUSES
Banks usually include certain clauses that impose a series of very burdensome economic obligations on the other party and that our Courts consider null and, therefore, inapplicable. The bank must return the amounts that were improperly charged for them.
Below, we briefly explain some of the most frequent ones that have an associated economic cost for you:
FLOOR CLAUSE
The floor clause is a requirement that banks usually include in mortgage loans.
They misleadingly establish that you will have to pay a minimum, even when the index or reference rate associated with the mortgage is lower (Euribor, IRPH, etc.).
With this, the bank always ensures that it wins, no matter how low the benchmark index may be.
Banks usually include a “ceiling” clause (or maximum remunerative interest rate) to create for the consumer the false appearance of balance in the obligations of both parties. But the interest rate they set is so high that it is never reached throughout the operation
DELAY INTEREST
If you have had a non-payment situation, the bank will probably include late payment interest with a very high percentage.
This clause is abusive and, therefore, void. All types of default interest that involve an application of more than 2 percentage points (+ 2%) on the remunerative interest rate of the loan are abusive.
Suppose that a borrower has a mortgage of 200,000 euros with a remunerative interest of 1%. The contract establishes a default interest rate of 10%, well above that limit of the remunerative interest rate plus 2 percentage points (1% + 2% = 3%). If the borrower defaults and accumulates a delinquent debt of 5,000 euros, the excess default interest rate would be 7% (10% - 3%).
Applying this rate to the delinquent balance of 5,000 euros, the borrower would be paying 350 euros in default interest. If this situation continues for three months, the accumulated default interest would amount to 1,050 euros.
The consequence established by our Courts is that it must be considered not established and, therefore, the charges made at that abusive interest rate must be annulled; The bank having the obligation to return the amounts improperly collected.
MORTGAGE EXPENSES
As the Supreme Court has declared, as a consumer you can claim the mortgage expenses that you paid when formalizing the mortgage deed, since they are abusive and, therefore, void.
Likewise, you can demand the return of the opening fee for your mortgage if they forced you to pay it and they did not explain the economic consequences and what it consisted of with sufficient clarity.
The deadline to make claims to banking entities ends on January 23, 2024; once 5 years have passed since our Supreme Court declared that such clauses were abusive.
For mortgages prior to June 2019
Because? Due to the entry into force of the Real Estate Credit Contracts Law on June 16, 2019, which regulated which of the parties must assume the costs of formalizing the mortgage. From that date the banks assume the notary and registration costs in the Property Registry, along with the management costs where applicable. On the other hand, the buyer pays the costs of appraising the property and the copies of the deed that are requested.
COMISION DE APERTURA
The Court of Justice of the European Union has established that, to be valid, the opening committee must be transparent.
And it will be the Courts that must assess whether the consumer has had sufficient information and has been able to assess the economic consequences that this commission implies, as well as its purpose.
SINGLE PREMIUM MORTGAGE INSURANCE
Our courts have established the illegality of requiring single premium insurance with the formalization of mortgages.
And, again, it will be the Courts that must assess whether the consumer has had sufficient information and has been able to assess the economic consequences that this commission implies.
