The Supreme Court has established Case Law from a case against BBVA, United Rural banks, NCG Banco. The Court notes in the Decission that in cases of abusive clauses, courts should "temper" the classic rigidities of process, so that it is not necessary the adjustment to the structure of appeals.
In the case under study, Supreme Court emphasized that "ground clauses" that were included in these contracts "outgrow transparency control as a general condition in the contracts, but do not breach the clarity required as contracts signed with Consumers"
The High Court understands that the terms are not transparent because, among other things, they are inserted "together" with "ceiling clauses" as apparent consideration of the same and there are not simulations of different scenarios related to reasonably foreseeable behavior of the interest rate in the time of hire.
It also highlights that there is no " clear and understandable" prior information about the cost of the loan in comparison with other types of loans of the entity, if any, or specific warning that the specific client profile is not offered the same.
In the specific case of BBVA, the decission warns that these clauses is "located within an overwhelming amount of data among which floor clauses are masked and diluted from consumer attention."
After analyzing the complaints filed by the plaintiffs, the Supreme Court proceeds to condemn banks to remove clauses from their contracts examined "in the form and manner in which they are being used" and prohibits them from future use as they were written in those contracts.
It further states that existing contracts "will remain binding on the parties under the same terms" but without the abusive terms. It also states the non-retroactivity of the judgment, so that the invalidity of the provisions shall not affect the continuation of the contract or payments already made.
Wise judges of my country! Time for people to rule!
Cheers!
Congratulations to all!
Maria
Beach of Bolonia, Tarifa, Cádiz, Costa de la Luz, South-west of Spain