Can you reclaim money from Spanish banks overcharging?

Can you reclaim money from Spanish banks overcharging?

Mortgage reclaim

Here is some information on how to reclaim money from a Spanish bank.

I was listening to the radio on the way to school with my boys yesterday and an ad came on for a legal company who claim that they are ‘the only English speaking law firm on the Costa Blanca offering unbiased advice to help people reclaim money back from Spanish banks’.

Once I regained control of my car I thought it was a good idea to repost the following email.

We have a client, David whose friend, Peter thinks he might have a legitimate claim against the Spanish banks. He is not even a Comaskey client, we just offered to help him anyway – why not?

He mailed me and I simply forwarded the email to Amanda in Spanish Solutions.
I read her reply and firstly was astonished at:

A) the amount of information Spanish Solutions will give away to our clients for free without trying to sign them up for anything or selling them anything. Really, when you are that confident in your abilities, you can give your best opinion and either clients believe you and sign up or they don’t.

B) next, Amanda made it perfectly clear that clients can do it themselves without using Spanish solutions. Why lie to the clients and tell them that they have got to use one company? Again, we strongly advise our clients to deal with the legal team in Spanish Solutions but at least, if we give the facts to people they can decide themselves what’s the best course of action.

If you think you might be entitled to a refund from a Spanish bank, we advise you to first read this email, gather the information you need and then speak to the professionals in Spanish Solutions, La Zenia.

Enter Amanda..

——– Original message ——–
From: Amanda Thomas <>
Date: 26/01/2018 09:30 (GMT+01:00)
To: pete.h###@yahoo.
Subject: Mortgage clause reclaim

Dear Peter,

Thank you very much for your enquiry via Ian Comaskey.

The Law

You may be aware that the European Court of Justice ruled on Mortgage Floor Clauses, which are the clauses put in a mortgage deed by some banks which basically meant that when interest rates went down the bank retained a minimum floor clause, so customers paid more interest. They are being seen as “abusive clauses” against the benefit of customers, and banks are being penalised by having to pay back the client everything they overpaid as a result of this, if a legal claim is made.

There are 2 different issues:

1º) Bottom clauses.

These have been declared illegal by the European Courts. Therefore, clients can force the bank to erase this clause and moreover recover all the money paid as a consequence of the execution of the bottom clause.

2º) Expenses for setting up the mortgage.

When you set up a mortgage in Spain you have to pay all the expenses (notary fees, land registry fees, stamp duty, etc). The Supreme Court of Spain decided that this is an abusive clause as the beneficiary of the mortgage is the bank.

The debt and the mortgage are 2 different things as the mortgage is just a guarantee that you are going to repay the debt.

Therefore, this guarantee benefits the bank and for that reason they must pay back all the expenses to register the debt.

The limitation period is December 2019 or 4 years since the mortgage was cleared.

Banks should be contacting clients to offer an amount of money to settle regarding the mortgage floor clause. So, they should contact all clients directly who are eligible.

But we have seen quite clearly that Banks have no intention of contacting clients to reimburse money and will only start it if the client goes to be bank in person or an authorised person goes using a power of attorney and makes an official petition.

The Process

The first thing is to check whether you have the abusive clauses in your mortgage (but I think you possibly have, as it is true we have quite a few cases against Banco Popular).

Please can you scan and email me the mortgage deed/ or mortgage deeds ( the “Escritura de prestamo hipotecario”. )

We will review your mortgage deed for free and let you know if the Bank should be reimbursing your money.
If you do not have your mortgage deed and invoices for setting up the mortgage we can take forward the claim for you.

To do this, we will require 423.50€ (includes IVA) to the attached bank details, plus we will need to arrange a power of attorney so that we can liaise with the Bank (this costs 121€ for a draft sent for you to have it executed abroad or 181.50€ if done here), so we would also need this additional sum.

If clients have to sue the Bank in Court in order to take matters forward, this which would be further costs. However, many of these claims are for 10,000€ + but we will not know until we check paperwork (deeds, invoices and another document from the Bank)

Legal Expenses

With regard to the legal expenses, this is a separate abusive clause and the bank are not forced to negotiate with clients for this. The European Courts have not ruled yet, only the Supreme Courts in Spain.

If you had this clause, we would claim the expenses back using a letter, negotiation with the bank and possibly legal action at the same time, however, we need the original invoices for Notary, Land Registry, stamp duty on the mortgage, valuation and the bank´s legal costs (not ours).

The bank would have dealt with the mortgage and kept the invoices or given you them at the back of your copy of the deeds.

Summary/Action Needed

Please email me a scanned copy of all your mortgage deeds firstly (and any invoices you find). As I said we will check them for no cost.

If you do not have these, then please either contact the Bank directly for this or send us funds in order to handle this for you (423.50€ and 121€ as I do not think you are in Spain, so 544.50€).

Please call me or contact me with any questions,

Kind regards

Amanda Thomas
Legal Assistant
Opening hours are Monday to Friday 9am to 4pm

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