Deadline to claim against Spanish banks for floor clauses in consumer mortgages

The floor clauses (“cláusula suelo” in Spanish) are stated on many Spanish variable interest rate mortgages to increase or decrease interest payments in line with the Euribor have made the variable interest rate mortgage repayments increased dramatically affecting also British mortgage holders in Spain who were forced to pay thousands of Euros more than they had originally anticipated.

The floor clauses (“cláusula suelo” in Spanish) are included on many Spanish variable interest rate mortgages. The floor clause states a rate of interest linked to the Euribor rate. As it has been rising sharply, mortgage quotes have increased accordingly. This has affected British mortgage holders in Spain who have been forced to pay thousands of Euros more than they had originally anticipated.

Floor clauses are not illegal in themselves. The problem is that, in many cases, they were not adequately explained, and that clauses in contracts are not “transparent” or “understandable”.

The Spanish Supreme Court established a four year deadline for those claims based on an “error or defect in consent”. This deadline starts from the end date of the mortgage contract signed with your bank, not from the date it was signed or the date you realised that you had a case.

However, there is no deadline for the claim if it is based on the fact that the floor clause is a general contract condition of an abusive nature.

Please do not hesitate to contact MARC White & Co. to discuss this or any other matter regarding Spain.

Categorised in: Spanish Law

This post was written by Yolanda Perez