Case Study; Bank Claims

Del Canto has helped hundreds of British private clients with Spanish mortgages make successful claims against Spanish banks who used floor clauses or other unfair terms

The Commercial Driver

Many Spanish banks who lent to property buyers between 2001 -2012 used floor clauses to guarantee minimum interest pay-ments or other unfair mortgage terms. There were also issues where deposits were lost on properties that were never built or completed when developers went bust after the property crash.

Our clients, many of whom are British, find themselves overpay-ing on mortgages on Spanish properties that are in negative eq-uity that they cannot afford to sell, or have trouble keeping up with mortgage payments.

In 2016 the European Union Supreme Tribunal declared that the Spanish banks must repay the excessive interest paid by custom-ers affected by bank floor clauses. Legislation was also passed by the Spanish Supreme Court enabling people to pursue the Span-ish Banks for lost deposits on properties not completed.


How Del Canto Chambers delivered value

We are one of the most experienced specialists in Spanish Floor Clauses, acting for clients since the Spanish and European Courts made their decision on claims. As we have offices in both the UK and Spain our clients do not need to travel to pursue their bank claims, no matter where their house or bank is located.

Many of our clients are British and we initially engage with them via our London office. Our specialist team then analyse their mortgage contracts, investigating the hidden legal terms and expressions to see whether their mortgage payments tracked the Euribor interest rate and assess if they can make a claim for any excess interest that was paid to the bank since the mortgage was first signed. We also identify associated mortgage expenses such as notary fees, tax etc that could also be claimed.

Using our representatives in our Spanish office and their in-depth knowledge of the Spanish legal system, we are able to chal-lenge and negotiate with the banks on behalf of our clients to get the maximum amount due, as often many of the banks offer a reduced settlement and often only pay the full amount if threatened with legal action. Should litigation be required we can take our client’s case up to the Spanish Supreme Court.

The Result

Spanish legal representation is fundamental when negotiating with Spanish banks or mortgage lenders.

With offices in both the UK and Spain, and British and Spanish registered lawyers, we are able to provide legal representation and advice to private individuals and can organise and advise on arrangements relating to property and mortgages in Spain.

Our presence and experience in the property, real estate and mortgage market allows us to intervene quickly, simplify matters for our clients, reduce costs and help resolve their problems. Our rate for claims against Spanish banks is among the highest in the property law sector and hundreds of our clients have successfully won their cases and renegotiated their debts by challenging unfair mortgage terms, repossessions and negative equity.