A provisional ruling laid down by a judge in Seville decrees that it is “illegal” for lenders to impose a “floor” on mortgage interest rates with immediate effect and has cited three banks or credit banks: BBVA, Caja de Ahorros de Galicia and Cajamar.
Despite the sentence being subject to appeal, by the banks named in the previous article on this webpage, this judgment is binding on all financial institutions.
The practice of imposing a “floor”, that is fixing a minimum rate unrelated to the Euribor, is now illegal.
Readers who are affected by this decision may approach their lender and apply for the mortgage interest rate to be set in line with the Euribor, may join as parties to the legal action (see previous article for details), and/or apply to their lender for a refund of all monies collected under this practice.
The judgment was laid down by the Juzgado de lo Mercantil numero 2 de Sevilla and concerns the “clausula de suelo.” The original decision date was September 30, 2010.
