BANK GUARANTEES PETITION

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This topic contains 15 replies, has 9 voices, and was last updated by Profile photo of katy katy 3 years, 10 months ago.

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  • #55777
    Profile photo of Anonymous
    Anonymous
    Participant

    BANK GUARANTEES IN SPAIN

    PETITION

    http://www.bankguaranteesinspain.com

    Thousands of Off-Plan purchasers in Spain were not provided with the legally required Bank Guarantees and in many cases where Bank Guarantees were issued the Banks & Savings Banks are now refusing to honour them.

    Off-Plan purchasers are the innocent victims in a trail of lies, deception, negligence, lack of due diligence and complete lack of control within the real estate sector.

    Many purchasers have been forced to take expensive and lengthy litigation proceedings in an effort to have their inalienable rights which are granted by LEY 57/68 upheld.

    In a direct response to these abuses, we have now launched a PETITION for purchasers of Spanish Off-Plan Property who are currently suffering or have suffered ANY type of Bank Guarantee abuse.

    The main aims of the PETITION which is primarily addressed to Spanish President, Mr José Luis Rodríguez Zapatero and the Governor of the Banco de España, Mr Miguel Ángel Fernández Ordoñez are:

    • To expose the negligent actions of all those involved including the Banks & Savings Banks

    • To highlight the unacceptable delays innocent purchasers are unnecessarily being subjected to in the courts

    • To force accountability and demand justice

    • To ensure change for the future

    The ultimate responsibility lies with Mr Zapatero and the Banco de España for their failure to adequately and effectively supervise the Banks & Savings Banks who are the guardians of LEY 57/68 and who were the ‘vehicle’ through which the illegalities were allowed to operate.

    This is a serious public order matter and our petition demands that the Banco de España and Spanish Government act immediately to ensure that:

    • Any purchaser not provided with the legally required Bank Guarantee is refunded immediately in accordance with LEY 57/68

    • Any purchaser in possession of a Bank Guarantee, where the developer has clearly defaulted on the contract, is able to execute the Bank Guarantee, in accordance with LEY 57/68, without the need for litigation

    • ‘Fast Track’ specialised courts be established

    • The Spanish Government and Banco de España must immediately set up a fund to underwrite the refunds on all Bank Guarantee cases

    • The Spanish Government and Banco de España must act now to ensure the abuse being suffered by innocent off-plan purchasers in Spain is ended immediately and that it is never allowed to happen again.

    If the Banco de España and Spanish Government fail to act within defined timescales on the above issues then we ask the European Parliament and European Commission to take firm and effective action demanding that these very serious financial illegalities be addressed as a matter of extreme urgency.

    This is the most extensive Bank Guarantee petition ever undertaken and it is essential that we gather as much information as possible to ensure we are able to present a comprehensive dossier of evidence and a complete account as to the scale of abuse suffered by innocent purchasers.

    Please go to the Bank Guarantees in Spain website and add your voice to this very important PETITION:

    http://www.bankguaranteesinspain.com

  • #100256
    Profile photo of Anonymous
    Anonymous
    Participant

    BANK GUARANTEES IN SPAIN FOR OFF-PLAN PROPERTY PURCHASES

    PETITION & WEBSITE LAUNCHED

    http://www.bankguaranteesinspain.com

    – Many Spanish Banks are guilty of gross negligence and lack of
    professional due diligence for their failure to issue or to verify the
    existence of Bank Guarantees/Certificates of Insurance to protect
    deposits paid in advance by purchasers for off-plan property
    in Spain, as required by Spanish Law, in particular, LEY 57/1968,
    Article 1.2

    – Purchasers hold Spanish President, Mr José Luis Rodríguez
    Zapatero and the Governor of the Banco de España, Mr Miguel
    Ángel Fernández Ordoñez ultimately responsible due to their lack
    of supervision and regulatory control.

    – In many cases where Bank Guarantees were issued to purchasers
    Banks are now refusing to honour them even though the developer
    has clearly defaulted on the contract, thereby unnecessarily
    forcing the purchaser into a lengthy and expensive litigation
    process

    BACKGROUND

    Spanish Law – LEY 57/1968 provides comprehensive protection for purchaser deposit funds paid to the developer in advance for a property. The rights granted to the purchaser under LEY 57/1968 are of a ‘Caracter de Irrenunciables’ (Inalienable Character) and are INDISPUTABLE.

    LEY 57/1968 states:

    Article 1.1: The developer must ensure the return of the payments made plus six percent annual interest*, by means of a Contract of Insurance granted with an Insurance Entity inscribed and authorized in the Record of the General Sub-department of Insurers or by means of a Bank Guarantee issued by an Entity inscribed in the Record of Banks and Bankers or Savings Banks, if the construction does not commence or complete for any reason by the agreed deadline.* The Building Act LEY 38/99 amends this percentage to the legal rate as published annually in the Boletín Oficial del Estado.

    Article 1.2: Must deposit the sums advanced by purchasers through a Bank or Savings Bank, which must be deposited in a Special Account, with separation from any other funds belonging to the promoter, which may only contain funds deposited for the construction of dwellings. For the opening of these accounts or deposits the Banking institution or Savings bank, under its responsibility, will demand the guarantee to which the previous condition refers.

    The preamble of LEY 57/68 explains clearly the reasons for its implementation in 1968. It states that there was justified public alarm at the fact that repeated abuses had been taking place with regards to off-plan deposits. It says the abuses which were obvious criminal acts had a serious disruption of social life, constituted a serious alteration of the social coexistence and caused irreparable damage to trust and good faith.
    It says LEY 57/68 was being introduced in the Public Interest to create general preventative standards to ensure the real and effective protection of funds paid in advance by purchasers and to ensure they received a refund in the event that the house building did not take effect.

    However, despite LEY 57/68 being introduced in the public interest to protect deposits paid by Off-Plan purchasers we now find that during the past 10 years thousands of Off-Plan purchasers in Spain were not provided with the legally required Bank Guarantees and in many cases where Bank Guarantees were issued the Banks & Savings Banks are now refusing to honour them.

    A number of Spanish Banks & Savings Banks accepted funds which they knew were for off-plan deposits and failed in their obligations under Spanish Law – LEY 57/68 – to either issue the corresponding Bank Guarantee or to verify the existence of a Bank Guarantee or Certificate of Insurance.

    Some Banks included pre-determined expiry dates in Bank Guarantees that they issued even though this is contrary to the requirements of Article 4 of LEY 57/68 which states: ‘Once the Certificate of Occupancy is issued by the Provincial Delegation of the Ministry of Housing and given by the promoter of the housing to the buyer the rights guaranteed by the insurer or guarantor will be cancelled’.

    As a direct result of this negligence many purchasers have been unnecessarily forced to take expensive and lengthy litigation proceedings in an effort to have their inalienable rights which are granted by LEY 57/68 upheld.

    THE SPANISH GOVERNMENT & BANCO DE ESPANA

    The Banco de España is the national central bank and supervisor of the Spanish banking system.

    The Banco de España stated in their 2008 customer service report (Memoria del Servicio de Reclamaciones 2008) and in August 2008 in El Pais Newspaper “There are obligations imposed by LEY 57/1968 on financial institutions – some banks have not acted with diligence”

    Spanish President Mr José Luis Rodríguez Zapatero said in THE EU PARLIAMENT ON 6 JULY 2010: “My country is based on the rule of law and it respects and ensures that laws are respected. The courts are responsible for the application of law. We stand shoulder to shoulder with those people who, maybe, have had the wool pulled over their eyes in the property sector”

    ULTIMATE RESPONSIBILITY

    The ultimate responsibility lies with Mr Zapatero and the Banco de España for their failure to adequately and effectively supervise the Banks & Savings Banks who are the guardians of LEY 57/68 and who were the ‘vehicle’ through which the illegalities were allowed to operate.

    PETITION

    Off-Plan purchasers are the innocent victims in a trail of lies, deception, negligence, lack of due diligence and complete lack of control within the real estate sector. In many cases the negligence and lack of due diligence began with the Estate Agents and has ended with the Banks & Savings Banks.

    In a direct response, Ruth Genda, herself a victim of Bank Guarantee abuse, submitted a Petition to the Banco de España in January 2009, however at that time the Banco de España suggested that the matter be dealt with by the Spanish courts. This was a totally unsatisfactory response from the Supervisor of the Spanish Banking System, therefore another more detailed PETITION has now been organised for purchasers of Spanish Off-Plan Property who are currently suffering or have suffered ANY type of Bank Guarantee abuse.

    This new PETITION has been organised by Keith Rule, Coordinator of the Finca Parcs Action Group, a group currently consisting of 63 purchasers on the Las Higuericas, Finca Parcs development, none of whom were provided with the legally required Bank Guarantees for their Off-Plan deposits.

    The main aims of the PETITION which is primarily addressed to Spanish President, Mr José Luis Rodríguez Zapatero and the Governor of the Banco de España, Mr Miguel Ángel Fernández Ordoñez are:

    • To expose the negligent actions of all those involved including the Banks & Savings Banks

    • To highlight the unacceptable delays innocent purchasers are unnecessarily being subjected to in the courts
    • To force accountability and demand justice

    • To ensure change for the future

    SERIOUS PUBLIC ORDER MATTER – DEMANDS OF THE PETITION

    This is a serious public order matter and our petition demands that the Banco de España and Spanish Government act immediately to ensure that:

    • Any purchaser not provided with the legally required Bank Guarantee is
    refunded immediately in accordance with LEY 57/68

    • Any purchaser in possession of a Bank Guarantee, where the developer has
    clearly defaulted on the contract, is able to execute the Bank Guarantee, in accordance with LEY 57/68, without the need for litigation

    • ‘Fast Track’ specialised courts be established

    • The Spanish Government and Banco de España must immediately set up a fund to underwrite the refunds on all Bank Guarantee cases

    • The Spanish Government and Banco de España must act now to ensure the abuse being suffered by innocent off-plan purchasers in Spain is ended immediately and that it is never allowed to happen again.

    THE EUROPEAN UNION

    If the Banco de España and Spanish Government fail to act within defined timescales on the above issues then we ask the European Parliament and European Commission to take firm and effective action demanding that these very serious financial illegalities be addressed as a matter of extreme urgency.

    DOSSIER OF EVIDENCE

    This is the most extensive Bank Guarantee petition ever undertaken and it is essential that we gather as much information as possible to ensure we are able to present a comprehensive dossier of evidence and a complete account as to the scale of abuse suffered by innocent purchasers of Off-Plan Property in Spain.

    Any person affected by this issue is urged to visit the Bank Guarantees in Spain website and add their voice to this very important PETITION:

    http://www.bankguaranteesinspain.com

    Other related information can be found on:

    http://www.eyeonspain.com/blogs/ley5768.aspx

    http://www.facebook.com/pages/Spanish-Off-Plan-Property-Lack-Of-Bank-Guarantees-LEY-5768/134524803233863

    http://www.fincaparcsactiongroup.com

  • #100272
    Profile photo of adiep
    adiep
    Participant

    Keep the news coming please Keith.

    Theres also a facebook page for those on facebook http://www.facebook.com/pages/Spanish-Off-Plan-Property-Lack-Of-Bank-Guarantees-LEY-5768/134524803233863?ref=search&v=wall

  • #100273
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Adiep

    Yes, that is the Bank Guarantees Facebook page that I created. We need to get the message out in as many ways as possible. This is a very serious issue and many people have their hard earned money at risk. It is clear that many Banks and Savings Banks (Caja’s) acted with a complete lack of professional due diligence and are grossly negligent.

    You can also read my Bank Guarantees blog on Eye on Spain:

    http://www.eyeonspain.com/blogs/ley5768.aspx

    I hope Mark will be able to add details of the petition on his news pages and assist us in spreading the word and reaching as many purchasers as possible who are suffering from any type of Bank Guarantee abuse.

    Kind regards

    Keith

  • #100298
    Profile photo of adiep
    adiep
    Participant

    I hope so too 🙂

  • #100330
    Profile photo of Anonymous
    Anonymous
    Participant

    As a seasoned (since 2005) protester about the problems encountered when Buying Off-Plan and Bank Guarantees that simply don’t work, I want to commend this Petition to EVERYONE reading this. Keith has carefully crafted it in such a way that it doesn’t matter whether you are an off-plan purchaser or not; you can support this petition by becoming a signatory to express your disapproval/dismay/disgust at the actions and non-actions that the Spanish authorities have taken in their complete disregard of their own law.

    You will recall Suzanne who has worked, and still is working, tirelessly on a petition started in May 2007 which has collected the support of well over a thousand signatures and accompanying stories, 792 of which were taken by her in person to the European Parliament where it went before the Petitions Committee. She was allowed to speak to it. It does not get closer or more focussed than this. Well, you can read the outcome of the Committee’s deliberations here.

    http://www.europarl.europa.eu/meetdocs/2009_2014/organes/peti/peti_20100223_0900.htm
    See No. 12 on the page and click on ‘en’ in the Languages column.

    Underneath Suzanne’s petition on the same page at No. 12 you will see the results of my own personal petition. In each case we are being referred back to the Spanish Justice system/Banking institution where we are told our cases can be dealt with. This appears to be the bog standard reply to every one of us who have petitioned in the European Parliament – and, when you think about it, has been the reply from every agency to which protests have been made whether they were Spanish authorities or UK authorities.

    Through the BANK GUARANTEES IN SPAIN PETITION, Keith is taking the EP Petitions Committee at their word and doing just that. Over a lengthy period of time he has researched the law which applies to Bank Guarantees (Ley 57/68) and has translated and explained it in ways which can be easily understood by everyone. (See his postings on this thread.) By taking this law apart, and dealing with cases section by section, he has devised a questionnaire in such a way that statistics can be extracted to provide hard evidence to be placed before appropriate ministers in the Spanish Government, the Governor of the Bank of Spain and the President of the CGPJ (Consejo General del Poder Judicial, the government body which oversees the legal profession).

    Take a look at http://www.bankguaranteesinspain.com

    The petition supports all those purchasing off-plan property:
    • those who are in the process who have never been given a guarantee,
    • those who were given an illegal guarantee,
    • those who have a guarantee that the banks are refusing to honour,
    • those who are currently in limbo and unsure of what to do next,
    • those who are thinking about a purchase of an off-plan property,
    • those who have completed a satisfactory purchase (yes, successes are needed in the statistical analysis) and
    • those who have not themselves purchased an off-plan property but who have sympathy with purchasers caught up in this farrago.

    The petition has a number of questions in each of its twenty sections. Do not be put off by the weight of numbers. Not all sections will apply to your case. The survey is very simple to answer and many of the questions have drop-down menus which are a great help. All that is needed are the FACTS and an email address. The survey can be completed anonymously if you wish.

    Think: if the bank owes you umpteen £s or €s it is worth spending umpteen minutes filling in the survey.

    Please support the petition in any way you can.

    Ruth

  • #100331
    Profile photo of Anonymous
    Anonymous
    Participant

    We should keep in mind that the people behind the Cajas are the Church/preist & politicians. The cocktail cannot become more powerful. The petitionioners should keep this mind

  • #100334
    Profile photo of Anonymous
    Anonymous
    Participant

    Understood, Shakeel.

    roots

  • #100900
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Ruth

    Thanks for your great post and supportive comments.

    Anyone affected by the Bank Guarantees issue should go to:

    http://www.bankguaranteesinspain.com

    and add their voice to the petition.

    Even if you are not affected by this issue, you can still support the petition.

    Kind regards

    Keith

  • #100912
    Profile photo of Anonymous
    Anonymous
    Participant

    @roots wrote:

    …… Well, you can read the outcome of the Committee’s deliberations here.

    http://www.europarl.europa.eu/meetdocs/2009_2014/organes/peti/peti_20100223_0900.htm
    See No. 12 on the page and click on ‘en’ in the Languages column.

    Underneath Suzanne’s petition on the same page at No. 12 you will see the results of my own personal petition. In each case we are being referred back to the Spanish Justice system/Banking institution where we are told our cases can be dealt with. This appears to be the bog standard reply to every one of us who have petitioned in the European Parliament – and, when you think about it, has been the reply from every agency to which protests have been made whether they were Spanish authorities or UK authorities….Ruth

    Just to clarify – there is as yet no outcome from the EU to the Spanish Property Scandal Petition & it is still well & truly open. The EU response referred to was an initial one, referring only to bank guarantees. There are still many other issues to be addressed; not least the crucial role of the lawyers in enabling the mess that many of us are still in, many years later.

  • #100948
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Suzanne

    You are doing a fantastic job with the Spanish Property Scandal Petition and I absolutely support your work and petition.

    I know first hand just how much time and effort is required to manage a group action or petition. So all those affected should be extremely grateful for the work you have done and are doing on their behalf.

    We are all fighting the same battle and I would urge any person affected by issues in the Spanish Property sector to support the Spanish Property Scandal Petition.

    Any person suffering from Bank Guarantee abuse can support both petitions.

    We need to put as much pressure as possible on all the authorities so they realise exactly the scale of corruption that has and is still taking place in the Spanish property sector.

    Kind regards

    Keith

  • #102288
    Profile photo of Anonymous
    Anonymous
    Participant

    Suzanne – I recently met with Marta Andreasen in Brussels. She is very supportive of our situations re Bank Guarantees, and all related property issues. Your petition was ignored by Gordon Brown. He stated that he would forward it to the FCO, who we already know are not interested as they have been made aware of the situation by many of us and choose not to help.

    We discussed this and Marta commented that it may be worthwile resubmitting your petition to both the coalition government – maybe a copy to both David Cameron and Nick Clegg individually? Perhaps William Hague may be more sympathetic also.

    You did so much work in preparing your petition and it seemed very convincing – I don’t know how Gordon Brown’s government could be so dismissive. Maybe there’s an opportunity for the coalition to show how much more public minded they are and offer us some long awaited help!

  • #114631
    Profile photo of Anonymous
    Anonymous
    Participant

    Hello all,

    As I see that many of you had problems with the deposits you gave to Herrada-San Jose, I must say that my lawyer in Spain won my case regarding the guarantees. As most of you, we didn’t have any individual guarantees to our name, they were just general guarantees.
    I know that every client has the same right as me so I asumme that you can recover this back too.
    We won against the banks Banco Pastor, BBVA and SGR and they already paid our guarantees back.
    I am really happy with the work done so if any of you looks for any legal assistance I can give you my lawyers email address or if you have questions you can write to me
    caroline.mills36@yahoo.comI hope that everyone can be as lucky as me
    Caroline

  • #114634
    Profile photo of Anonymous
    Anonymous
    Participant

    Sorry to add to this thread… But as I am a very cynical person I think Caroline’s post is spam. Apart from adding the same post to other blogs and the use of a Yahoo email address, (let’s have one from an UK ISP) the English has let her down.

    Yes it’s good English, in fact very good English but unfortunately not good enough. I am afraid some of the constructs just give that tell tail sign of non-native.

    Nice try!!

  • #114635
    Profile photo of Anonymous
    Anonymous
    Participant

    @JP1: cynical or not. Cynism shows that you have seen the world and I respect you for this wisdom. I agree with you that this is a spam and I think against the rules he/she should have taken the route of a pm.

  • #114636
    Profile photo of katy
    katy
    Spectator

    Yes, it’s spam!

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