EU court adviser offers relief for Spanish banks on mortgage floors
(Reuters) - The European Court of Justice advocate general on Wednesday said a Spanish court ruling capping banks' liabilities for so-called floor clauses in mortgage contracts was right, offering a relief for banks which had feared multi-million euros compensations.
The European court still has to issue a ruling on the issue but it generally follows the recommendations of its adviser.
Shares in several Spanish banks which still have the clauses in their mortgage contracts, including Liberbank, Banco Popular, Sabadell and Caixabank, rose after the adviser's recommendations were made public.
Hi Fifi,
Thanks for the info. It doesn't seem right if something is miss-sold then customers should get a full refund. Capping their liabilities is wrong. we had a floor clause mortgage, that has since been removed (after a complaint). It saves us 110 euro's a month. I thought this ruling was going to take years 9still may do)
Quote from: jill tie on July 15, 2016, 10:53:48 AM
Hi Fifi,
Thanks for the info. It doesn't seem right if something is miss-sold then customers should get a full refund. Capping their liabilities is wrong. we had a floor clause mortgage, that has since been removed (after a complaint). It saves us 110 euro's a month. I thought this ruling was going to take years 9still may do)
It probably will, someone will appeal the decision, a Mortgage Lender in the UK called Acendon, which now goes under a different name, were finally forced to do a complete refund and were fined £7,000000, but it took 7 years.