CJEU’s line threatens Spanish banking system
CJEU’s Advocate General does not declare null the floor clauses’ retroactivity and the so-called “Bankxit” is near to become a reality
The CJEU’s Advocate General has issued this Wednesday on the retroactivity of the floor clauses’ nullity. Clients who signed a floor-clauses mortgage with a bank have overpaid by their interests rate and, due to this sentence, they hoped to be given back their overpayments. After this decision, this will not be possible.
The Spanish Supreme Court had already enacted a sentence on that issue and it has obliged banks to give back their floor-clauses received amounts since 9th May 2013 but if the long-expected CJEU’s Advocate General’s line would have vouched for these floor-clauses’ retroactivity, all the clients that would have been signed a mortgage like that, would have been benefited from it.
Savings would have been huge because “an average floor-clause mortgage can reach a saving of 10.340 euro if that clause is considered abusive from the signing of the contract. On the contrary, if that clause is thought as abusive only since May 2013 the savings for a client could be up to 6.590 euro. A difference of 3.750 euro against the mortgagor”, as it was calculated by the Spanish Journal Cinco Días.
Consequently this Advocate General’s decision, it will be given back the floor clause overpaid amounts to the clients that would have signed a floor-clause mortgage since May 2013 only.
On the other hand, is the banking system that is benefited from it. Followings the Spanish journal El Pais’ calculations, the bank BBVA could avoid to pay 1.850 millions of euro to the floor clauses affected clients, Caixabank, 660 million, Banco Popular around 334 million and Bankia 160 millions. This is the closest to a banking bailout, without effectively being so; a real “bankxit” that disengages Spanish banking system from the EU’s ones.
The decision adopted by the CJEU’s main authority represents a crash back down to earth for the numerous Spanish citizens that have fought at the courts during years. In this regard, it is necessary to point out that the final sentence will not be known until December 2016 but the Advocate General’s line on floor-clauses, although it is not binding, it is used to be taken into consideration by the Tribunal to enact a definitive sentence.
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