REFUND OF OVERCHARGED INTEREST PAID FOR THE APPLICATION OF MORTGAGE “FLOOR INTEREST RATE”.
Recent European and Spanish Supreme Court sentences have made it possible to force banks to cancel the “floor clause” in mortgages, and apply the initial interest rate agreed in the mortgage title deed.
This implies not only the cancellation of that “floor interest rate” (which limited how low the interest rate could go) and the application of the initial agreed rate (with the corresponding reduction in the monthly payments), but also the possibility of recovering all the overpaid amounts due to the application of the floor clause. In some cases, this is a significant amount of money.
The matter affects millions of people, so the Spanish Government approved a Decree encouraging banks to establish procedures to settle these questions amicably.
This means that some banks accept cancellation of the floor clause and the complete refund of all overcharged interest within a maximum time limit of three months from when the client presents the corresponding application.
If you are interested in studying the possibility of presenting this application and, in case the bank opposes, presenting the corresponding legal action, and you need assistance in any or both matters, please let us know.