Adeje council, through the OMIC (the municipal consumers office), can supply members of the public with a standard letter form to initiate the reclamation process if agreement hasn’t been reached
Adeje council, through the municipal consumers office under the auspices of the department of health, (Councillor Amada Trujillo Bencomo), in collaboration with the financial consumers organisation ADICAE, held an information event on Wednesday for members of the public affected by mortgage floor clauses and related matters.
The event was organised following a series of judgements on the matter by both the Spanish supreme court and the European courts, who have deemed that, in principal, banks must return excess interest that may have been charged to mortgage holders who had a ‘floor clause’ in their mortgage, in effect limiting the amount interest payments could drop, regardless of the Euribor (the Euro Interbank Interbank Offered Rate). In principal the courts have ruled that where the clause was non-transparent, the consumers have the right to money back.
The Adeje council, through OMIC, are preparing standard forms that members of the public can use in initiating a claim with their banks if no adequate offer has been made under the Royal Decree, Real Decreto Ley 1/2017. This decree sets out the means by which members of the public should be able to reclaim monies due. The banks and lending institutions affected have been given a month by the authorities to set in place the machinery for processing claims and facilitating repayments. Banks, upon receipt of a claim, will have three months (maximum) to respond and either make an offer based on the particular mortgage conditions, or in the case of rejecting the claim, set out clearly their reasons for doing so. If this is not acceptable to both parts, the case may then go to court.