Floor Clause Claims

This is because it forced borrowers to pay above a set interest rate even if the official euribor indicator went below that threshold.

Floor clause claims. Why can i make this claim now. The aim of this clause is to set a minimum interest which the customer must pay even if the euribor reference for the majority of spanish mortgages were below that figure. The average compensation amount ranges between 4 000 and 7 000 euro per consumer when they choose to assert a claim through a lawyer specialised in banking law and file the corresponding suit. With it the bank is therefore guaranteed to collect that minimum amount although euribor european benchmark interest rate is below this minimum.

A floor clause also known as clausula suelo or suelo hipotecario is simply a clause that has been inserted into variable rate mortgage agreements in spain during the last 20 years that affects the interest rate payable on the mortgage. The floor clause or cláusula suelo in spanish is a common term in many mortgages that was declared illegal by both spanish and european law. In the same way if you tried the extrajudicial procedure and you are not satisfied with the offer that they have made or they have refused the refund of your money you can always go through the courts to recover your money. If interest reference increases then the interest on the mortgage also increases likewise if euribor decreases.

Namely 98 of consumers and users who presented claims on account of the application of a floor clause had claims upheld against the bank. The floor clauses is a clause incorporated by banks in mortgages which sets a minimum interest rate to be paid in monthly installments irrespective of the market interest.