Spanish Floor Clauses
· What is a floor clause in a mortgage loan?
When the Bank or Caixa grants a loan stating to the person who has applied for it that the interest they will pay is variable, depending on the flow in the market, but establishes a clause in which it says that in any case it will charge a minimum percentage that is usually 2% or3% despite the fact that the variable interest is lower than this percentage.
· What can you do?
These types of clauses in mortgage loan deeds are legally “abusive”and are therefore “null and void”, meaning they have no effect on the person who applied for the loan from the bank. However, as the bank will have overcharged, the person affected and who has overpaid can request the restitution of this money
· How to ask the Bank or the Caixa for the restitution of what you have overpaid for the floor clause?
Currently, all financial institutions must have a direct claim mechanism in place for all their customers, although they usually ignore these requests
Therefore, it is necessary for the person who has received the loan top resent a formal document to the Bank or the Caixa, and better if it is through a lawyer specialised in the subject, and in the event that the Bank does not agree to return the money, it will be necessary to sue it.
One of the banks that has been most reluctant to return the money has been Banco Popular, which will apparently submit to whatever is decided in each lawsuit that is filed against it, even if it has to pay the costs of the process.
OUR ADVICE: Go to a specialist in this matter so that they can review your mortgage deed and determine if there is a floor clause in it and make a direct claim to the bank or file a lawsuit. The banks will never want to return the money they have already collected unless they are forcefully requested to do so by a lawyer specialised in the subject, as in Bufete Ortega.