There’s some very good news for those with a Banca March clausula suelo – the institution has added a further €20 million to its provisions for 2016 for possible refunds to its borrowers that have had to pay an elevated rate due to the presence of the notorious floor clause in their contracts.
The news was reported by the National Securities Market Commission (CNMV), after the Mallorcan bank had informed the regulator of its decision. However, the bank also said that its ground clauses “have not been definitely annulled in general by a final judgement” and considers that it has “legal and procedural arguments” that “should be valued in the remedy that is still being processed.”
Nonetheless, Banca March said that it had opted to put the extra money aside “in order to cover the contingency against possible claims”, in light of the publication of the ruling of the Court of Justice of the European Union (CJEU) – as also recently reported by Rapido Claims – and the government’s approval of the Royal Decree Law on ground clauses.
What does this mean for you and your Banca March floor clause?
As we mentioned in our previous story on the court’s shock ruling, clients with a floor clause from one of the many Spanish banks that have been caught up in the scandal could be in line for an additional €3 billion to €4.5 billion in total, on top of what they were already entitled to claim back.
The clauses – which require those taking out an affected mortgage on a Spanish property to pay a certain minimum interest rate, even if the rate being tracked by the mortgage is lower – have led to many borrowers having to fork out thousands more Euros than should have been the case. This latest announcement by Banca March of more possible compensation money is a clear sign of the institution’s expectation that many more claims will be made after the latest ruling.
However, it’s worth remembering that regardless of how many Banca March bank claims are ultimately made and how much the bank eventually pays out to its customers, the bottom line is that if you have a valid claim, you have a valid claim.
If you suspect that this may be the case for you, we would therefore strongly urge you to get in touch with us now for further advice – completely free.
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.