Spanish Banks Return 37% Of Floor Clauses Demands, Reject 20%

Spanish banks return 37% of floor clauses demandsConstruction of properties in Spain

Spanish banks have returned 1.5 billion euros in cash to more than 350.000 people affected by the floor clause, with whom the lenders reached an agreement after they filed a claim. This is according to figures presented by the banks at September 30, via the Commission which was set up last April to monitor the issue.

Until end-September, the banks had received requests from a total of 1.052.789, people, of which 350.404, or 37.5%, were awarded a cash compensation. A further 33.329 were compensated by measures “different from cash returns,” the Commission’s statement said. There are 50.817 cases still waiting to be dealt with, according to estimations.

Meanwhile, a total of 204.996 cases, or 19.5%, were rejected. There were also 343.043 (32.5%) which were deemed inadmissable and 39.755 (3.7%) are still waiting to be looked at.

In the majority of estimated instances, the lender in question reached an agreement with its client to return in cash the amount which it overcharged in relation to the floor clauses. The banks have returned a total of 1.497.763.594 euros to 350.404 clients.

At the beginning of this year, the Government approved a decree law to set up a mechanism which the banks and clients affected by the floor clauses could use to evaluate their characteristics in their mortgages. In this way they could decide whether they complied with the necessary information requested by the Supreme Court.

The court considered that the floor clause was legal and implemented in good faith by the lenders. But it also ruled that its commercialisation should be accompanied by special information requisites, over and above those specifically included in the regulations valid at the time.

Home ownership is part of the Spanish culture, within the context of an efficient mortgage system. And this has allowed families to own their own home with good financing conditions. Over 80% of Spanish families are home owners, well above levels in the rest of Europe. This high percentage shows how important our mortgage system is and that it should be preserved.