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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 528. Prosecutors pro Consumers in Spain
16 May 2011 @ 08:28

Madrid Public Prosecutor, José Ignacio Esquívias Jaramillo, who has been recently

appointed as Prosecutor pro Consumers by the General Public , has taken part in

an ongoing judicial procedure against abusive clauses of Bank contracts.

This means that the results of this Case will be applied to all the finantial

institutions in Spain and not just to those who are part in the trial:  BBVA and

Banco Popular

Clauses under discussion in this case are:

-         Floor clauses: Which limits reductions on mortgage interests.

-         Clauses which require consumer´s request within ten days previous to revision if an interest rate change is applicable.

-        Clauses which allow Entities to sell their own products without the previous consent of clients.  

Good that Judges and Prosecutors are putting Consumers first. This drives to better balance. 

Sancti Petri Beach, Chiclana, Costa de la Luz by La Convento at Flickr.com



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2 Comments

Tracey Lewis said:
04 June 2011 @ 15:21

Dear Maria
Thank you for the news,could you tell me please when the case including Banco Popular against the abusive clause will likely to have a verdict from the supreme Court? Only we have been solely been fighting Banco Popular for 2 years against the 4% flooring clause they happened to slot into the Euribor +1% mortgage we took out with them but they failed to mention!This was in 2007 so you can imagine we are paying roughly 300e a month more than we should be with this clause in it, I think it must be between 4-6,000e extra we have paid on our mortgage payments with this clause in- what I would like to add is last month we went to our branch to try to negoiciate a better terms at our annual review, we asked for the clause to be removed & to have only Euribor +1% which was what we wanted in the first place!they would only give it for one year & they are being really shrewd as I think they know they are going to ruled against shortly in Madrid from having the clause in mortgage contracts! they wanted us to sign a letter from the banks lawyers for whom they say is a requirement for us to be allowed the disclusion of the clause for one year only? They also said that they where currently asking all mortgage customers they have with this clause to sign it, basically it takes away all rights as a consumer! it says that the customer accepts they did everything clearly & correctly when they sold the mortgage with it in,that we agree to it not being abusive,that it is merely to cover the banks extended admin costs on the mortgage for buying the mortgage loan in the first place for us, so that makes it exempt from them requiring it to be standard in there mortgage terms & conditions!It wasnt even on Bank headed Paper, just printed on Plain A4,it amazed us too that they could put it in English as well as Spanish to make sure it was legal, but the mortgage papers,including mortgage offer etc was only ever given to us in Spanish?Anyway we havent signed this paperwork & dont intend too!but we really wanted to highlight this trick from Banco Popular to you Maria & to any other vunerable customers that we may reach on your excellent & informative blog!
We unfortunately, dont have the money excess to change our mortgage lender, so have to carry on this year now on this 4% flooring clause & hope the court finds in favour of the consumer very soon?We also unfortunatly wish they had no win no fee agreements in Spain as they do in the UK? as we could get you to fight for us then Maria only we cant afford a legal case ourselves at present, we are going to the bank of Spain fir a review on our case, the media in English in Spain,forums etc & sending a reclamation of bad service against our branch to the Town Hall, but do you know Maria if the consumer association who has taken Banco Popular amongst others to court at present, is allowing individuals to sign up to the case so that our case will be included in any outcome in court please?If so which association will we need to contact please Maria?
Thanks again for your excellent & updated legal tips they are so informative & helpful.
Thanks Tracey


Tracey Lewis said:
04 June 2011 @ 15:21

Dear Maria
Thank you for the news,could you tell me please when the case including Banco Popular against the abusive clause will likely to have a verdict from the supreme Court? Only we have been solely been fighting Banco Popular for 2 years against the 4% flooring clause they happened to slot into the Euribor +1% mortgage we took out with them but they failed to mention!This was in 2007 so you can imagine we are paying roughly 300e a month more than we should be with this clause in it, I think it must be between 4-6,000e extra we have paid on our mortgage payments with this clause in- what I would like to add is last month we went to our branch to try to negoiciate a better terms at our annual review, we asked for the clause to be removed & to have only Euribor +1% which was what we wanted in the first place!they would only give it for one year & they are being really shrewd as I think they know they are going to ruled against shortly in Madrid from having the clause in mortgage contracts! they wanted us to sign a letter from the banks lawyers for whom they say is a requirement for us to be allowed the disclusion of the clause for one year only? They also said that they where currently asking all mortgage customers they have with this clause to sign it, basically it takes away all rights as a consumer! it says that the customer accepts they did everything clearly & correctly when they sold the mortgage with it in,that we agree to it not being abusive,that it is merely to cover the banks extended admin costs on the mortgage for buying the mortgage loan in the first place for us, so that makes it exempt from them requiring it to be standard in there mortgage terms & conditions!It wasnt even on Bank headed Paper, just printed on Plain A4,it amazed us too that they could put it in English as well as Spanish to make sure it was legal, but the mortgage papers,including mortgage offer etc was only ever given to us in Spanish?Anyway we havent signed this paperwork & dont intend too!but we really wanted to highlight this trick from Banco Popular to you Maria & to any other vunerable customers that we may reach on your excellent & informative blog!
We unfortunately, dont have the money excess to change our mortgage lender, so have to carry on this year now on this 4% flooring clause & hope the court finds in favour of the consumer very soon?We also unfortunatly wish they had no win no fee agreements in Spain as they do in the UK? as we could get you to fight for us then Maria only we cant afford a legal case ourselves at present, we are going to the bank of Spain fir a review on our case, the media in English in Spain,forums etc & sending a reclamation of bad service against our branch to the Town Hall, but do you know Maria if the consumer association who has taken Banco Popular amongst others to court at present, is allowing individuals to sign up to the case so that our case will be included in any outcome in court please?If so which association will we need to contact please Maria?
Thanks again for your excellent & updated legal tips they are so informative & helpful.
Thanks Tracey


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