SPANISH JUDGE DOES GOOD WORK ON ABUSIVE DELAY INTEREST CLAUSES

SPANISH JUDGE DOES GOOD WORK ON ABUSIVE DELAY INTEREST CLAUSES

The European Court of Justice has issued a ruling dated 21 January 2015 (Joined Cases C 482/13, C 484/13, C 485/13 and C 487/13, Unicaja and others), in which it states that the Spanish legislation on foreclosure to which the national judge must request the recalculation of delay interests arising from the application of a rate higher than three times the legal interest rate, as that legal measure is consistent with the Law of the European Union.

The Spanish judge can also consider the possibility of suppressing the application of the said clause.

Maria, could you explain a bit more about the above statement please? It was sent by you in your latest email update.

It seems to be saying that the Euro Court judges are agreeing to give claimants upto 3 times legal interest for delays. It then says that the judge can suppress this application.

Last regulations on foreclosure in Spain obligues the Judge to request Bank for recalcualtion of delay interest rate if this is higher than 3 times the legal interest rate.

This has been recently applauded by the European Court of Justice

Hi Maria

I'm not sure what this means.

We are due some interest/costs from the banks after receicing our deposits back after winning our case.

Does this relate to this situation

Regards

~~Last regulations on foreclosure in Spain obligues the Judge to request Bank for recalcualtion of delay interest rate if this is higher than 3 times the legal interest rate.

This has been recently applauded by the European Court of Justice

Maria,

I've bolded the part that i'm not sure about. Why would the 'delay interest rate' be more than '3 times higher than legal interest rate'?

Legal interest is around 4%, would the judge say that he would award 12+%?

Seems a bit strange.

I believe this is about foreclosure, i.e. repossession of property following default on mortgage payments.  The banks try to add huge interest penalties to the debt, but can be challenged in court and ordered to reduce the penalty interest if the judge believes it to be abusive.  The European Court of Justice seems to agree that banks cannot just add huge penalties for their own benefit and have to follow the law.

I understand that in Spain mortgage debt is for life therefore the debt left after repossession can be crippling if the greed of the banks is not curbed.

Aah, I see. Thanks for the explanation.

I saw 'legal interest' and automatically thought it was in connection with Ley 57/68 etc.

If this be true

"The European Court of Justice seems to agree that banks cannot just add huge penalties for their own benefit and have to follow the law. "

then why, may I ask , has the European Court of Justice not also ensured that the Banks in Spain CONSISTENTLY adhere to Ley 57/68 in a timely manner that respects the due process of law (i.e. that there be no contra legem rulings or inconsistent interpretations within the various regions of Spain, which ultimately deny innocent purchasers of their inalienable rights) and thereby ensure that the Banks "follow the law"?

This legal lottery and delays to justice during this last decade relating to consistent adherence of existing law Ley 57/68 should be fully recognised by the European Court of Justice.....