The European Union Court of Justice (ECJ) orders today the full and total refund of the Mortgage Floor clauses in Spain.
Today, the European Court of Justice declared that the decision of the Spanish Supreme Court Ruling held on the 9th of May 2013 was limited, and the terms and conditions and indeed the use of the ruling were unfair.
Not only did the ruling provide incomplete and insufficient protection for consumers, but it also limited the amount that clients could claim back when trying to recover the money paid, in relation to overpaid mortgages. Basically, that meant that those affected by the ground floor rate clause could only reclaim any overpaid money from the 9th May 2013, irrespective of whether they had paid more before this date.
This new ruling is a total U-Turn and will mean that banks will now have to pay back (to the last euro) all of the money paid by the clients from the date that overpayment took place, rather than from the 9th May 2013.
This decision applies to the whole of the European Union and especially to Spain, finally ending a long legal battle.
It represents a clear victory for customers and consumers against banks. According to the Bank of Spain report, the banks will have to return close to 7.5 billion euros to all the customers that have been affected.
This decision is legally binding, meaning that it affects both the pending cases and any future proceedings that have not yet been reviewed.
However, with regard to final judgments, this issue is still controversial.
Claim your money back
We firmly believe that most of the “threshold clauses'” that reflect mortgage contracts are unfair and customers of banks are at a disadvantage and penalized for their lack of knowledge in financial matters.
You should get help from expert lawyers so they can negotiate with the bank on your behalf, and can even sue the bank in order to save you money on each monthly instalment, due to the fact that the interest you pay is probably greater than the official interest stated by the European Bank Central.
If you contact a Law Firm in order to claim back your mortgage expenses, you will have the opportunity to check your deeds to make sure whether there is a mortgage floor rate. If so, you could then ask the Bank to reimburse the money that is being taken because of that abusive clause.