Reply To: Bank Guarantee problem? Are you involved in one?

#88114
Anonymous
Participant

Roots: In case you haven’t already read this article by Mark:

‘..Consumer organisations and buyers have complained to the Bank of Spain, which claims it has never received this type of complaint before. The Bank of Spain is preparing a report, for release in September, that criticises the practices of certain banks. “We are still looking into some cases, but the conclusion is that some banks have not behaved diligently,” a source from the Bank of Spain told El Pais….

The Bank of Spain is adamant that the financial institutions underwriting the guarantees must pay out in full if developers are in breach of contract. “The financial institution has to ask the developer if there has been any breach of contract, for example a late delivery. If so, the payout should be automatic,” the Bank explained to El Pais…’
https://www.spanishpropertyinsight.com/buff/2008/08/bank-guarantees-for-off-plan-stage-payments-a-new-source-of-woe-for-buyers/

I haven’t found the BOS September ‘report’ as yet.