Del Canto Chambers International Lawyers

The Supreme Court rules in favour of the banks for mortgage expenses

The Decision has already aroused the first controversies in the Spanish legal scene and in the Consumers Associations that will undoubtedly raise this case to the European Court of Justice which will have the last word to say.

It is not the first time that the CJEU corrects and amends the decision of the Spanish Supreme Court. Although, the complete sentence has not been published yet. The Supreme Court agreed with the banks in detriment of the consumers considering the AJD Tax (Actos Jurídicos Documentados) should be paid by consumers.

We advanced in our last article Who pays mortgage expenses – lender or borrower? The jury is still out , that clients were expecting this decision as a good opportunity to recover part of their high amount paid on mortgage expenses.

Many voices have been already heard against this decision; Patricia Suárez, President of Asufin (Association of Financial Users) who quotes that “the economic impact on banks and the increase in litigation may have weighed on this decision, but Magistrates have been wrong “.

As it happened to declare the nullity of the Floor Clauses, not everything is lost, and a preliminary ruling will be raised to the European Court of Justice (CJEU) which will have the last word to say.

We should not forget that clients can still recover their expenses for notary, agency, appraisal and Land Registry, interest on late payments either for commissions for opening or early termination. Therefore, the Doctrine about the same court in December 2015 ruling remains intact and only the AJD Tax has been modified.

At Del Canto Chambers we are specialised in claiming on abusive mortgage clauses. If you entered in a mortgage, please feel free to contact us. We should respond you within 24 hours.

Laia Fernandez
For and on Behalf of
Del Canto Chambers


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