European Union Tag

Costa Luz Lawyers > Posts tagged "European Union"

Penalty interest for delay in mortgage or loan payments

Do not pay delay/penalty interest more than 2% above the agreed interest rate of the loan or mortgage If the penalty interest for payment delay of your loan (personal or mortgage) is more than 2% above the agreed interest rate of your loan or mortgage, the judge must maintain the rest of the clauses of the contract and cancel the clause relating to delay/penalty interest.  Nothing can be charged to the consumer if the rate is more than 2% above the agreed loan rate. Why 2 percentage points? The Supreme Court in Spain has considered 2% as the maximum which will not imply...

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Spanish Timeshare industry being punished by the Supreme Court

The Timeshare industry is being heavily punished by the Spanish Supreme Court as, in most of the cases; contracts were drafted against formal requirements of the Law. The Supreme Court is condemning Timeshare companies to refund clients a proportional part of all payments made by them. Being the proportion based on the number of years that the timeshare has been used over a period of 50 years.  The Supreme Court is also condemning related financial institutions to refund amounts jointly and severally with the Timeshare companies. CostaLuz Lawyers have so far  helped clients in these timeshare developments:  Diamond Resorts, Club Primavera,...

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European Union Commission on the IRPH clause in Mortgage Loans

The European Commission, in its observations to the Court of Justice of the European Union (CJEU), has positioned itself in favour of people affected by the mortgage index, IRPH, which directly opposes the judgment of the Supreme Court on the IRPH index in Spanish mortgages. This index, known as the ‘Index of Reference of Mortgage Loans’, (IRPH), affected 1.3 million mortgages. In those mortgages the interest rate was linked to the IRPH and not to the Euribor. IRPH is calculated by taking into account the loan interest rates offered by all financial entities and has always been much higher than the...

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On European Wills

On August 17 2015, a European Regulation on inheritance law came into force. This regulation, allows European citizens to choose for their inheritance to be regulated by either country of residence or country of nationality. Therefore if you are currently a Spanish resident, but you have a different nationality that will provide you with better conditions for your heirs, you can choose this by simply stating it in your will. This came into effect in 2015 along with the European Certificate of Succession (ECS). This document has been designed to make international probate procedures easier in Spain as it will be a...

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The European Commission says the Supreme Court Sentence on IRPH violates Community legislation

The European Commission has recently issued a report on IRPH clauses in Spain, which leaves Spain’s Supreme Court in a compromising situation. The effects could be of similar proportions to the cancellation of the ground clauses of the mortgages, although we will still have to wait for the response of the Court of Justice of the European Union (CJEU) to a question submitted by a court in Barcelona. In November 2017, Spain’s Supreme Court ruled that mortgage contracts linked to the IRPH are not abusive because this index, being official, already offers guarantees of transparency. But now the legal section of...

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List of all abusive clauses that a mortgage may contain

Clause of limitation to the minimum interest rate (floor clause): It is usually located in the stipulation 3 bis with the denomination. "Límite a la variacióndeltipo de interés variable” It usually coexists with another upward limit (or ceiling). The abusiveness of the clause due to imbalance arises when there is a disproportion between the floor and the ceiling so that it is the Bank that is covered against the mortgagor. 87% of mortgage users were not informed by their bank of the inclusion of said clause Multi-currency clause: The Supreme Court, in its Judgment of November 15, 2017,...

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