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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 1026. Money Back if Ground Floor in my mortgage
Tuesday, September 10, 2013 @ 3:27 PM

Most applauded Congratulations to Cuenca Appeal Court, very wisely, self-evident Court Decission. Teaching the Spanish Supreme Court to understand what nullity is and what are their effects under very basic and general principles of Law. Since Roman times. Nullity have always clear consequences: effects to be reversed. In short and simple terms: money to be refunded

As Roman said: "Quod nullum est, nullum effectum producit" ( Null produces no effect)

Mortgage deeds had floor clauses  between 2'95 % and 4'50 % , with a maximum rate of 11%.

Appeal Court in Cuenca further explained that clauses were drafted unilaterally by the party "before the conclusion of the contract phase , with a total absence of individual negotiation , and finally , were imposed by the bank , which means the exclusion of the principle of autonomy of the will in determining the content of the contract. "

"For a ground clause to be considered as  illegal, there should lack reciprocity between  ' floor ' and ' ceiling ' " says the Cuenca Court Decission, explaining that " it includes constraints, both  in the minimum and the maximum levels , whose lack of proportionality has not been adequately justified ( ... ) being absolutely disproportionated " .

From the May 9th Supreme Court one, this is the fourth Court Decission won by ADICAE  in which several judges have forced Cajamar, Ipar Kutxa , Unicaja and now Banco de Castilla La Mancha to return the money overcharged during the whole period.

Congratulations to clients, ADICAE and JUDGES!

Cuenca, South of Madrid province, Spain, by Mugor, at flickr.com



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