Why are banks not paying out ?

I have been waiting 4yrs plus for my property and the dead line to build is well and truly gone.I would never have  purchased with out a Bank guarantee but now the builder is in administration the bank is refusing to pay out and I am now having to go to court. We are all constantly told the Bank Guarantee is the way to safe guard ourselves when buying off plan and are in place to protect us if the builder should fail to build or indeed if they go bust.Indeed many Spanish lawyers on this site agree that the builder going bust is exactly what the BGs are for. I am sick hearing this now the BGs appear to be useless and why oh why should I be forced to take the bank to court at huge expense to myself.
Many people if they got their deposit back using the BGs would still choose to try again and buy another Spanish property .
This would surely help the property /building industry in Spain . The banks do not understand the damage they do if BGs are so difficult to enforce why  oh why would anyone ever invest in off plan Spanish property again.It will not be the credit crunch that spells the death sentence of the Spanish building industry and economy but the Spanish authorities them selves with their disgraceful inability to enforce their own Laws
Try as Imight I can not understand why these banks feel they are above the law. Which as explianed to me seems fairly clear . Perhaps some one else on here a lawyer or anyone can explain this to me I am at a loss to understand it. 
It is as if the powers that be in Spain have pushed the self destruct button.
yours in disbelief JA

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Julie Anne, the corruption in Spain  has no boundaries! The judges appear to stick two fingers up at their Laws. It beggars belief. I empathise with your frustrations.  Your situation is shocking.

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Julie Anne:

Your situation is regretable but.. I need to say... very commun lately in Spain. You can contact Bank of Spain for a claim : www.eyeonspain.com/blogs/costaluz/535/bank-of-spain-in-english.aspx

Anyhow, I also want to give some hopes to you as these executive judicial actions against Bank are being mostly won by Consumers in Spain these days.

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Hi Maria,

In a civilised society, most proffesional and public  institutions are accountable to some discretionary /overuling body. Who are the Judges and Banks accountable to? Or are they a (corrupt) law unto themselves?

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Julie Anne

Reasons.
Why should they when the law protects them and not you.
It could take years to get them to court and thats money they dont have to pay out now
By the time it gets to court the market just may have turned.
You may not have the money to pay very expensive legal fees and therefore cant afford to go after them.
Some banks would simply go under with mass claims.
Could get to court and there is a bent judge.
The banks would appeal anyway as thats the system. ( I have been 5 years with a case that the bank admits is valid and dont even have a court date even which year)

What is of a concern and perhaps someone could clariffy this
BANKS AROUND THE WORLD ARE CRASHING AND WHAT HAPPENS TO THE GUARANTEE IF YOURS GOES BUST AS THEY PROBABLY WILL.
Whats the bet the assets will be taken by another bank without the liabilities.

Stinks 
Oh Yep  Something legal that I even paid for myself to cover my arse is friggin useless.

Just Dan

This message was last edited by Just Dan on 9/15/2008.

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 Hells teeth Dan, don't  shove any  more sticks into an already buckled wheel !!!!     Nothing is safe anymore. I'm contemplating a five year hibernation and hope everything will be sorted by then...and I'll be 21 years of age again!

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I would be interested to know on a much higher legal level if this is an infringement of human rights........ where the laws of the land are being seen to be abused in this way and a government appears to be doing little about it. Indeed could the EU take sanctions against a country where such an obvious abuse is continuing to occur (in increasing numbers if these posts are to be believed) ? I wonder what the statistics would show i.e. the numbers of foreign investors affected overall by this situation relating to Bank Guarantees.

I agree completely with JA when she summarised that Spain is shooting itself in the foot by not addressing these issues IMMEDIATELY. Where is the incentive to re-invest in Spain so long as legal rights are seen to be being ignored in this way? Unfortunately perhaps one way forward is to bring this to the attention of the media in such a way as to force their arm to respond. Warn prospective purchasers of the legal lottery that exists in Spain as we speak. Or even better let the pressure come from within Spain as increasing numbers of people are recognising that it's in no-one's interests to remain with the status quo. I suspect however that it requires someone with dynamism, knowledge and great courage to take up the mantel!

In the interim it's up to the likes of Maria to have to battle on and fight for consumer rights but from what we can gather it still appears unfortunately to be a lottery as to whether you will win your case or not, even with a sound argument. Surely this needs to go to a much higher level now for it to be effective? 

We are also horrified by the slowness of a legal system where you can win your case for breach of contract but be stuck in a massive queue, waiting to fight either a nonsense appeal (where the developer is playing the system) or waiting indefinitely (no apparent time constraints) for an enforcement order for return of monies, and in the interim the developer goes bust......... all of this is happening right before eveyones eyes and no-one appears to be taking any firm action to resolve the matter. The government should be pressured (by the EU?) to ensure that judges’ decisions are closely monitored, proper time constraints are put in place to avoid abuse and the courts are rid of malpractice of this kind.

Tish, you are so right to highlight the word civilised, as the legal system appears very uncivilised in this regard, especially when you consider Spain to be an integral part of the EU.

Trouble is with all the economic downturn implications as exists today (Meltdown Monday as they predict) perhaps the battle will be perceived as insignificant in the realm of things. Oh dear.......

'Cmon Maria...please give us some hope in all of this nightmare.

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Hi Tish
There was a time when it was said by many that I was the eternal optimist.
Even to the point that I was accused of being an E. A for trying to put a positive stance on the market.
Remember the days when I was just getting fed up with all the doom and gloom merchants

Goodbye cruel world as I cant see the light anymore.


Just Dan

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