Another blow for BBVA ,Spain’s second-biggest bank, which has been trying to reduce its exposure to illegal floor-clause claims.
BBVA is one of the banks whose name is often mentioned in the Spanish press with reference to illegal mortgage interest floor clauses, which can now be reclaimed in full.
In an attempt to try and limit its exposure to claims from its mortgage clients, the bank tried to convince the Spanish Supreme court that not all its clients with illegal floor clauses were entitled a full refund, only a partial refund. The court rejected that argument earlier this month.
The means that BBVA, and it follows all other lenders, will now have to refund all the money overcharged to clients with illegal clauses, with no time limit going back. The Supreme Court is not accepting any arguments that reduce the impact of the ECJ ruling that claims could be retroactive with no time limit.
BBVA has one of the biggest exposures to floor clause reclaims, estimated at around 1.2 billion Euro. The bank has already made provisions of €577 million in 2016.
If you have a mortgage in Spain, or had one in the last four years, and would like a free no-obligation evaluation of your case to see if you have a claim to make against your lender for an illegal mortgage floor clause, and also to claim back all or part of your mortgage setup fees, fill in the form here: Spanish mortgage refund claims.