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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 270.Campaign to pressure on Banks and Savings Banks
09 May 2010 @ 10:42

What about a campaign for putting pressure on  Financial Institutions to pay off in those cases where they failed to secure on the existence of Bank Guarantees/Insurance policies for off-plan buyers?

 

When a Bank Guarantee was not produced for the buyer, the only resort is to go against the developer: this results in a very long judicial procedure for the Court decission to be in place and then a new battle , in order to enforce it and obtain the funds back. Many developers are now very short of funds in Spain.

 

If Banks/Saving Banks where your money was deposited can show they made all possible for the existence of the Bank Guaranteess, then, just conveyancers and developers will be liable for the damages related to the lack of it.  

 

But if they cannot prove the due diligence they displayed it, they, Banks and Saving Banks are liable.

 

Someone needs to respond for this disaster and the first ones to ask about are Financial Institutions:  Banks were officially and legally entrusted by Law 57/68 to custody off plan purchasers´funds.

A big battle and a reunion of efforts is needed here, we are concerned they were long-life savings for many of you.

Who is joining o us regarding this? Before starting the judicial battle, we are sending communications to all those Banks and Saving Banks which received money from our clients and will follow up with communications to Ombudsmen and Bank of Spain. We want Bank of Spain to issue an express  statement  on liabilities of Banks on this particular point: please email us if you are in that situation so we can join your name to the efforts.

Our email address is web@costaluzlawyers.es and please write Bank´s liabilities as the subject of the email.

Best regards,

Maria

"the Beach of Zahara de los Atunes (Cádiz)", by Luis Lopez-Cortijo

 



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3 Comments


Keith - FINCA PARCS ACTION GROUP said:
09 May 2010 @ 20:12

Dear Maria

We, the FINCA PARCS ACTION GROUP are with you 100%.

As you know over the past 2 years I have been very determined to prove this exact point - the liability of Banks under LEY 57/68 Article 1.2

It is clear that over the past few years many of the Banks who were financing the developers have been negligent and lacked due dilligence with regards to the issuing of Bank Guarantees.

As much pressure as possible should be put on Banco de Espana and the Spanish Government to give them no option but to force the Banks to comply with the requirements of LEY 57/68. The Banks are the guardians of this Law and for too long they have been complicit in the illegal activity carried out by some developers.

For years the Spanish legal system has not addressed the real issue. It is all too easy to win a case against a Bankrupt developer. Although the purchaser wins the case they are really the loser because all they end up with is an expensive legal bill and no refund.

But due to purchasers like myself who are determined not to lose their hard earned money which was paid in good faith, together with the support of Costa Luz Lawyers no stone will be left unturned in the fight for justice.

As you know our FINCA PARCS ACTION GROUP currently consists of 62 purchasers all without the legally required Bank Guarantees on the Las Higuericas, Finca Parcs development. The total amount of the deposits we paid to CAM Bank is just over 2 million Euros. CAM, who were the sole funding bank of the development knowingly accepted our off-plan deposits into Special Accounts (Cuenta Especials) and failed to demand that the legally required Bank Guarantees were issued. They are clearly grossly negligent and have acted with a complete lack of due dilligence.

I would advise purchasers on any Spanish development who have not been issued with the legally required Bank Guarantees to commence action as soon as possible to either have their deposits secured as required by LEY 57/68 Article 1.1 and 1.2 or to demand an immediate refund from the developer and bank to which the deposit was paid.

Kind regards

Keith
FINCA PARCS ACTION GROUP

www.fincaparcsactiongroup.com

fpag@btinternet.com



anonymous said:
18 May 2010 @ 23:28

Sorry I have not left my name but I do not wish the solicitor acting for us at the moment to be able to see it (if he looks at eye on Spain). The solicitor allowed my husband and I to sign a contrac with an off-plan developer showing where the bank guarantee was being held, without actually seeing a copy of the said guarantee. Eventually the contract was cancelled because the developer had not built it in the stated time. We put a claim on several of the apartments, successfully, through the Spanish courts and eventually won our case about five months ago. We are still waiting on the money!


Maria said:
24 May 2010 @ 08:10

Anonymous:

You are then in a good moment for the action against the Bank to be started.

Best,

Maria


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