Bank customers seeking to claim back floor clause compensation are in line to receive considerably higher payouts, following a surprise ruling from the European Court of Justice this morning.
At 9.30am CET, the European Court of Justice went against a Spanish court’s initial ruling, meaning banks will now have to repay their clients what they were incorrectly charged on their mortgages before May 2013.
Early estimates say this puts an extra 3 – 4.5 billion euros on to the total amount that clients will be able to claim back.
As a result, share values have dropped significantly for several of Spain’s largest banks, those with the highest exposure to compensation claims.
We’re extremely pleased with this outcome on behalf of our clients, at Rapido Claims, and our legal team will now be analysing the terms of this ruling and exactly what it will means for our clients’ claims.
What is a Clausula Suelo or Floor Clause?
It is a clause in a Spanish tracker mortgage agreement that requires you to pay a minimum interest rate, even when the interest rate that the mortgage is tracking – such as the Euribor – is lower.
This means that you could be paying thousands of Euros more than you should be, and the Supreme Court has agreed that many such clauses can be considered abusive.