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Spanish Off-Plan Property - Bank Guarantees - LEY 57/68

This blog is for all those Off-Plan property purchasers in Spain who have not received Bank Guarantees for their deposit funds as required by Spanish Law, in particular LEY 57/68 Article 1.1 and 1.2 and are now at risk of losing their money.

In addition many purchasers who did receive Bank Guarantees are now finding that the Spanish Banks are refusing to honour them without legal action being taken by the purchaser.

Thursday, December 22, 2011



Dear Sr. Rajoy


Congratulations on becoming the new Spanish President.


Our website and petition - - is representing all those innocent people who attempted to purchase an off-plan property in your wonderful country.

Unfortunately due to the lack of supervision by the Banco de España and the systemic corruption in the Property and Banking Sectors we are now victims of Bank Guarantee Abuse.


Our off-plan deposits have been stolen by the corrupt developers and negligent Banks.  LEY 57/1968 has not been enforced and the Banco de España has failed in its role as the SUPERVISOR OF THE SPANISH BANKING SYSTEM.


Your court system is overloaded and cannot deal with the number of cases.  On many occasions Judges are failing to apply LEY 57/68 correctly in their judgements.


LEY 57/68 was introduced in 1968 to protect the purchaser from the abuses and corruption in the property sector.  The rights granted to us by LEY 57/68 are 'Caracter de irrenunciables'.  Our rights have been violated.

In your 100 Proposals for Change you make several references to transparency, trustworthiness, credibility and consistent justice.  For example:


"A modern state must guarantee values of certainty, legal security and legal trust"


"rigorous tackling of many of the problems which have so far been ignored"


"We must restore our trustworthiness and credibility in the world"


"greater answerability backed up by full transparency"


Your document concludes by stating:


"We must recover our leading role abroad as a reliable, dependable and respected partner. The economic and institutional reforms we are going to undertake will contribute to international respect for Spain and its international role as an advanced Western democracy that is committed to freedom, democracy and the defence of human rights"


To achieve this you must immediately tackle Off-Plan Bank Guarantee Abuse and ensure LEY 57/1968 is enforced in all cases – past, present and future.


During the past year we have been in contact with the advisors of the former Housing Minister - Sra. Beatriz Corredor.


We look forward to working with your Housing Minister, Minister for the Treasury and Minister for Economic Affairs and Competitiveness to ensure that Off-Plan Bank Guarantee issues are resolved and measures are put in place so this corruption and abuse can never happen again.


Please take a look at our website - - and feel free to contact me by email:


Kind regards





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Thursday, December 22, 2011

"Now Sr. Rajoy, a word of advice - I don't think you should brush those Property and Bank Guarantee campaigners under the carpet like Sr. Zapatero did. To regain trust in our housing market you must resolve their issues now and eliminate corruption from the property and banking sectors"

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Thursday, December 22, 2011

"A word in your ear Your Majesty - Don't you think I did a good job for the last 8 years of fobbing off those people suffering from property abuses in our country?"


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The New Spanish Government Cabinet
Wednesday, December 21, 2011

Here are the names of the Vice President and 13 Ministers which make up Mariano Rajoy's new cabinet, as announced earlier this evening:


· Ministro de Asuntos Exteriores y de Cooperación, José Manuel García Margallo.

· Ministro de Justicia, Alberto Ruíz Gallardón.

· Ministro de Defensa, Pedro Morenés Eulate.

· Ministro de Hacienda y Administraciones Públicas, Cristóbal Montoro Romero.

· Ministro del Interior, Jorge Fernández Díaz.

· Ministra de Fomento, Ana Pastor Julián.

· Ministro de Educación, Cultura y Deporte, José Ignacio Wert Ortega.

· Ministra de Empleo y Seguridad Social, María Fátima Bañez García.

· Ministro de Industria, Energía y Turismo, José Manuel Soria.

· Ministro de Agricultura, Alimentación y Medio Ambiente, Miguel Arias Cañete.

· Ministra de la Presidencia, Soraya Sáenz de Santamaría Antón.

· Ministro de Economía y Competitividad, Luis de Guindos Jurado.

· Ministra de Sanidad, Servicios Sociales e Igualdad, Ana Mato Adrover.

· Vicepresidenta primera del Gobierno y Ministra Portavoz, Soraya Sáenz de Santamaría.

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Thursday, December 8, 2011

CAM racked up billions of euros of debt, stole innocent purchasers Off-Plan deposits, was corrupt from top to bottom and still the ex-CEO Roberto Lopez Abad and ex-President Modesto Crespo were allowed to jump ship back in July and take with... them millions of Euros in self-awarded 'golden handshakes' and pensions.

The woman who was then promoted to CEO by the Banco de España/FROB - María Dolores Amoros was then sacked after one month for 'creative accounting'.



There should be a public enquiry into the corruption at Banco CAM.

We, the FINCA PARCS ACTION GROUP demand that BANCO CAM (BANCO SABADELL) are made to immediately refund the 2 million Euros they stole from our group!

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Thursday, December 8, 2011

Sabadell gets 5.2 billion euros in assistance to acquire CAM

Deposit Guarantee Fund also to cover part of future losses

EL PAÍS - Í. D. B. / A. S. - Madrid - 07/12/2011



The Bank of Spain on Wednesday decided to award failed Banco CAM, which was taken over by the central bank in July, to Banco Sabadell.

The procedure for integrating CAM into Sabadell calls for the Deposit Guarantee Fund (DGF) to initially acquire CAM for 5.249 billion euros through a series of capital increases and subsequently transfer it to Sabadell for the nominal sum of one euro. The deal makes it the most costly bank rescue operation ever in Spain.

The total amount includes the 2.8 billion euros injected by the state Orderly Bank Restructuring Fund (FROB) into CAM when it was intervened by the central bank.

The DGF, which is funded by the country's banks, will also bear 80 percent of the losses that accrue from CAM's impaired asset portfolio for the next 10 years after CAM's provisions for these assets have been used up. That will mean that virtually all of the DGF's current funds of 6.593 billion euros will be absorbed.

The government changed the law this year to make the DGF responsible for covering losses from the injection of public money into banks. The purpose of this was to avoid taxpayers having to foot the bill for the recapitalization of the banking system and to prevent any further widening of the public deficit. "The orderly restructuring of Banco CAM is not expected to have any impact on the state budget," the FROB said Wednesday.

The FROB for its part will ensure CAM has sufficient liquidity. CAM owes 7 billion euros to the European Central Bank and has also to return a further 9 billion euros it borrowed in the wholesale market.

CAM came unstuck because of its exposure to the ailing property sector, which has been in a slump since the property bubble burst around the start of 2008. CAM posted a loss in the first nine months of the year of 1.731 billion euros and has a non-performing loan ratio of 20 percent.

Sabadell was the only bank to submit a takeover plan for CAM to the Bank of Spain after other interested parties, including Banco Santander, BBVA and La Caixa, dropped out of the race.

The absorption of CAM will allow Sabadell to displace Banco Popular as Spain's fifth-biggest bank, with a loan portfolio worth 124.785 billion euros, a network of 2,279 branches and staff of 17,042.

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Monday, December 5, 2011

Spanish house sales fall to record low since 2005

Wednesday, November 30, 2011

Home sales fell 31.9% in the third quarter of 2011 over the same period of 2010, accounting for 84,852 transactions, and representing the lowest figures recorded by the Association of Property Registrars since 2005.

The agency attributed the data to the difficult economic situation and high unemployment, which has not been alleviated by the reduction in prices and mortgage borrowing or by low interest rates.

El Mundo reported that, of the total number of homes sold between July and September, 41,734 were resales (28.7% less), a figure which marks a new low. 

The remaining 43,118 homes sold were new (34.7% less), a figure that is above the record low reached in the last quarter, mainly due to the lowering of VAT for the purchase of housing (from 8 % to 4%) which came into force in August and will continue until the end of the year.

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Monday, December 5, 2011

Please see the regularly updated Bank Guarantees Facebook page at:

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Monday, December 5, 2011


Four out of every ten mortgage borrowers are not even informed by their banks about the rates they will apply

Nine out of every ten lenders cover up the right to choose a notary and to revise the deeds in the notary office three days before signing. - 4 October 2011

FACUA-Consumers in Action has carried out a nationwide survey into the information available and the conditions imposed on users by the banking sector when signing mortgage loan deals.

The association has gathered data of 3,252 mortgages. It has become evident that there is a huge lack of transparency in the information offered by the banks about the conditions of their loans. The study took place between 19th September and 3rd October.

Two out of every ten customers sign a mortgage without comparing offers of different banks and building societies. 10% only evaluate the conditions of two different entities, 17% look at three, 22% at four, 13% at five, 7% at six, and 11% at seven or more.

40% informed us that before applying for a mortgage loan they did not receive detailed and complete information about the rates applicable and reviews.

An even higher percentage, 55%, were not even informed about the costs and commissions applicable, previous to signing.

There is a possibility of cancelling a mortgage loan with advanced notice, either partially or completely. 39% of borrowers were not aware of the existence of a cancellation process or were unclear about the commission applied on this.

The area denounced by users as having the worst level of clarity and information available prior to signing, no less than 73%, relates to accessory obligations imposed by banks when a mortgage loan is contracted.

Elsewhere, 84% of participants claimed they would not know what to do if faced with a situation in which it became difficult or impossible to pay their mortgage.

No choice of notary, no previous information from the notary office

86% of mortgage borrowers were not informed by their bank or building society about their right to choose a notary for the formalisation of the loan in a mortgage deed.

95% also did not make it clear that the deeds would be available in the notary office for the borrower to examine, from three days prior to signing.

Likewise, eight out of ten borrowers did not know what the mortgage liability was (83%) and how much it would amount to (86%).

Nine out of ten participants were not informed of the base clause

42% of participants have a mortgage with a base clause, that has completely prevented them in profiting from falls in the Euribor. Almost a third, 27%, did not know if this clause exists in their loan deal.

87% of customers that were aware that their mortgage had a base clause were not informed by their banks or building societies of their existence, nor what they implied.

25% of consumers do not know when or how to review their mortgage.

Obligated to buy related products

88% of participants were made to buy insurance related to their mortgage so that the offered conditions could be applied. This included life insurance, home insurance, funeral insurance and rent guarantee insurance.

Contracting a savings or pension plan is an imposition suffered by 20% of borrowers. The imposing of a credit card, 38%. And the direct deposit of salary and receiving of provisions into an account, 66%.

Similarly, 16% had to contract a financial service (swaps, clips, etc.) linked to the loan. These very confusing and unclear products could represent a genuine defrauding and are being subject to numerous judicial inquiries against them.



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