Reply To: Are Bank Guarantees worth the paper they’re written on?

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Anonymous
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@katy wrote:

Could also be that the developers have very large mortgages with said banks.

Think you may have hit the nail on the head, Katy.
A case of ‘support us on this or
a) we may go under and you’ll ultimately lose out or
b) we’ll simply change banks if you don’t.
c) plus a few brown envelopes whizzing around?

What is going on at the moment is definitely not in the ‘spirit’ of the Bank Guarantee law (law 57/1968).

I know someone who has written an official complaint to the Bank of England, stating how Spanish Banks are not honouring Bank Guarantees issued to Brits in Spain, quoting examples.
Will be interesting to see if it results in any action by the B of E – eg. making an official complaint to the EU?

Maria de Castro, a lawyer who contributes to this forum, wrote a good synopsis of the BG law, which I think some banks and judges should re-read to refresh their memories:
http://www.eyeonspain.com/spain-magazine/bank-guarantee-legal.aspx