After nearly a month of negotiations between the central Government ruling party, the PP, and the opposition PSOE, which failed to reach any agreement, the Government has announced its own plan ostensibly to halt the 400 repossessions that take place daily in Spain.
The plan has already been criticized as totally inadequate and ineffective for the majority of families facing repossession proceedings by Consumer Associations and the national Association of Judges.
Under the plans there would be a two year moratorium for certain groups of very vulnerable citizens and families. However, many “vulnerable” members of the society will not benefit from the plan including pensioners, single parents with one child, and families with less than three children or without a child under three years old. Additionally during the moratorium period bank charges and interest would not be suspended so the debt would continue to increase “simply delaying the repossession and exacerbating the debt” according to critics.
The plan also fails to tackle the so called “abusive clauses” in mortgages which increase interest and bank charges on late or missed payments, some after as little as two months, and which are considered largely responsible for the escalating debts which lead to some repossessions.
