All EOS blogs All Spain blogs  Start your own blog Start your own blog 

Live News From Spain As It Happens

Keep up to date with all the latest news from Spain as it happens. The blog will be updated constantly throughout the day bringing you all the latest stories as they break.

Mortgage-holders' case against six banks strengthened in light of record fine for Euribor manipulation
08 December 2013 @ 14:48

SIX banks which have been ordered to pay a record fine for 'manipulating' the Euribor, or Eurozone interest rate, are based in Spain and where their mortgage customers were facing repossession for non-payment, these may now have legal grounds to challenge this decision.

JP Morgan, Citigroup, Deutsche Bank, Royal Bank of Scotland, RP Martin and Société Générale have been hit with a total 1.7-billion-euro fine for flouting EU competition regulations – the highest in banking history.

The European Commission has not confirmed exactly how these entities manipulated the Euribor rate – currently at 0.5 per cent and expected to end the year on 0.25 per cent, but doing so enabled them to 'control' interest rates in other currencies, including the Japanese Yen.

All six banks formed a 'cartel' or alliance allowing them to benefit mutually from their practices, and the level and length of time of their involvement had a direct bearing on the amount of the fine, with Deutsche Bank being ordered to pay 465 million euros for its 32 months in the Euribor cartel and 259 million for a similar alliance with the Yen, whilst Royal Bank of Scotland, which had been involved for eight months, has been fined 131 million.

For the mortgage customer – a total of 6.7 million of them in Spain across all the banks – they may have paid interest rates above the actual level of the market.

And those seeking to have their mortgage contracts rendered null and void on the grounds of inflated interest rates and other 'abusive clauses' will now see their case strengthened in overturning their repossession for non-payment.

Read more at thinkSPAIN.com



Like 0




2 Comments


ads said:
09 December 2013 @ 16:31

What about innocent consumers seeking to have their contracts rendered null and void by Spanish Banks who failed to adhere to an existing Spanish Law, in place to protect offplan purchasers' deposited monies via provision of legal Bank Guarantees and secure accounts?
Aren't these consumers being subjected to a similar "manipulative " scenario by the Banks?
How are the European Parliament / Commission protecting these innocent consumers or providing deterrents to this form of abuse?
All they suggest at present is that the EU Commission have no legal authority to interfere and that consumers should seek justice from the "competent" member state!
The state that has no effective or "competent" regulation in place against Banks to ensure consumers' INALIENABLE rights are fully protected from the outset.
Why aren't they similarly fining Banks for the theft of thousands upon thousands of depositers' monies, currently in a black hole, unaccounted for, which could subsequently be used as a means to compensate this illegal and highly unethical behaviour by the Banks?


andyintorre said:
09 December 2013 @ 18:46

none of the above banks are based in Spain, they do like most other banks have operations there but are not based in Spain. Therefore its hard to see what this fine by the EU has to do with bad mortgage practice in Spain?


Only registered users can comment on this blog post. Please Sign In or Register now.




 

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x