Spanish floor clause and mortgage expense complaints registered with Banking supervisor soar 178% in 2017

Bank of Spain

The claims service of the Bank of Spain has been overwhelmed by consumers making complaints against lenders for abusive mortgage interest floor clauses, and set-up costs.

The Claims Service of the Bank of Spain is a body that evaluates consumer complaints against financial service companies. It is an impartial and independent service that reviews complaints, claims and inquiries about banking services or products. However, it does not pass judgement on mortgage floor claims, as that task falls to the Spanish Courts. The Claims Service just checks that the fees charged were correct given the terms of the contracts.

The Bank of Spain has revealed that there were 40,173 complaints registered with it against Spanish financial institutions last year, up 178% compared to the previous year. Last year beat even the previous record of 34,645 complaints in 2013, when the raging financial crisis led to a deluge of complaints against banks.

Last year’s massive increase in complaints against banks was caused by a flood of claims against illegal mortgage interest floor clauses and mortgage setup costs, explain sources at the Bank of Spain, cited in the Spanish media. Spanish courts have also been saturated by these claims.

According to provisional figures for 2017, the Claims Service found that financial institutions were in the right in almost two thirds of cases reviewed, with almost a third of complaints yet to be considered. In the one third of cases where the Claims Service finds in favour of the consumer, banks accept the decision in 75% of cases, up from 30% to 40% in years gone by.

The fact that the Claims Service finds in favour of financial institutions in two thirds of cases shows that regulation and supervision of the sector is working better, argues the Bank of Spain.

At Canto Chambers, we analyse your mortgage deed within 48 hours to determine if you can file a claim with your bank. If you think your mortgage is encumbered with an abusive clause, please get in touch for a free, no-obligation evaluation of your mortgage contract with a view to making a claim against any abusive clause. You can contact us here.

Laia Fernandez, Lawywer
Del Canto Chambers

* This article has been written by a third party not owned or controlled by Spanish Property Insight (SPI).
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