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Welcome to The Spanish Mortgage Compensation Group
WHO WE ARE AND OUR CREDENTIALS
Spanish Mortgage Compensation Group” (UK and Spanish based) is a subsidiary of the “Spanish Claims Group” and a fully compliant member of the independent umbrella organisation “Class Action Consumer Litigation Management”, headquartered in Berkeley Square, London (See www.caclm.com). We are specialists in litigation against large corporations and governments, on behalf of consumers who have been mistreated. We consider ourselves the ‘slingshot & rock’ that little David needs to win against Goliath!
Our teams of highly qualified, professional and knowledgeable staff and associates are made up of marketeers, media specialists, administration managers, accountants and lawyers, all of whom are focused on protecting the general consumer and obtaining them a fair recompense.
All of our services are offered on a ‘NO WIN – NO FEE’ basis. We never ask our clients to fund any costs or take any risks, unless they volunteer to do so! We provide all the funds and administrative help needed to prosecute claims to a successful conclusion.
From successful claims only, we will need €965 to cover our actual projected costs and legal fees, PLUS as our profit, 8.9% of the compensation payable (being just €89 from each €1,000).
The following is an example so there is no misunderstanding:-
There is a huge variation in the value of compensation claims, but the average is now forecast to be in the region of €8,000
So from a successful compensation pay-out of €8,000, we would be paid:
€965 (fixed) + €712 (being 8.9% of €8,000) = €1,677 to us. So the Claimant would receive €6,323
NOTE. If unfortunately your claim/s ends up in years of litigation, there will be other costs and fees to pay. BUT we will never ask you to contribute from your pocket.
Our claim process is straightforward, transparent and fully compliant with all the regulations and requirements of all the jurisdiction within which we operate.
At no cost to you, our client, we firstly analyse and assess the potential merits of the claim and advise you of the potential compensation. Only then, should you wish to proceed, do we begin the administrative process.
Despite the situation with the Spanish Banks being a type of ‘class action litigation process’, each claim is considered and prosecuted on its own merits and all our clients are treated individually. And although such claims can take months or even years to conclude, we never give up, never fail to provide the funding and keep all of our clients fully updated on progress each month.
In conclusion, if you think that you may have been wronged by the actions of the Spanish Banks and want the best chance of recompense, but without any risk of any nature, or more money from your pocket, then we really believe you cannot do better than choose us to fulfil that ambition.
WHAT IS THE “CLAUSULA SUELO” (“Floor Clause”)?
It is a small ‘clause’ slipped into the weighty terms and conditions of many ‘tracker’ mortgages & loans provided by over 40 Spanish banks, over the past decade or more.
This ‘clause’ had been judged ‘unlawful’ by the European Court of Justice.
The ‘clause’ placed an arbitrary minimum interest rate (usually a ‘floor’ of 4%) payable by the mortgagee (the Borrower), irrespective of how low its ‘tracker’ interest rate fell (a specified and published ‘interbank’ interest rate).
Most mortgages & loans were/are pegged to the “Euribor” (European Interbank Offered Rate), the same interest mechanism as the “Libor” in the UK.
Over the past decade the Euribor has fallen to very low levels, even into ‘minus’ percentages. A ‘minus’ percentage rate means that the bank lending the money has to pay the bank borrowing the money. (You may think that is crazy, but it makes sense when inflation is taken into account. That is, a sum of ‘cash’ is worth less as time goes on, if it cannot be used to make more profit than its value loss due to inflation).
So because of this ‘floor clause’, the mortgagees were forced to pay unsustainable high monthly payments, which in many cases lead to foreclosures and loss of the property. Although for a different reason, it’s basically the Spanish Banks’ equivalent of the British Banks’ PPI scandal and looks to be just as huge!
Another practice of the Spanish banks, that of charging ‘set-up’ fees, has also been judged as ‘unlawful’.
The Spanish banks are to be forced to pay huge compensation sums to their customers, which may include:
- Repayment of all overpaid interest charges for the full terms of the mortgage/loan.
- Repayment of any ‘set-up’ fee charged.
- Accruing Interest on all overcharges.
- Damages for properties that have been reposed due to unlawful charges.
The Relevant Spanish & European Legislation
In May 2013, Spain’s Supreme Court ruled that mortgages containing the ‘Clausula Suelo’ were “abusive”, but banks were not initially ordered to refund their customers.
In April 2016, a Madrid judge went further and decreed that 40 of Spain’s biggest lenders had to pay back their borrowers the extra interest paid on mortgages, but only dating back to 2013.
In December 2016, the European Court of Justice ordered that there should not be a time limit on how far back a claim could qualify and that all over-payments had to be repaid.
Range & Value of Compensation Claims (and any ‘statute of limitation’ date)
Overcharged monthly interest, mostly for the majority of the life of the mortgage. For example, on an average term mortgage of €150,000 with a ‘floor clause’ of say 4%, the over-payment could be €200 or more per month, so the claim could be as high as €20,000.
Cases where the bank has foreclosed on the property because the mortgagee could not keep up the (unlawful) payments demanded, could include claims for repayment of the deposit and all of the monthly payments. There could also be claims for loss of capital opportunities, consequential damages etc (subject to how the property was repossessed and the contributory factors). And possibly a percentage of punitive damages in cases of extreme hardship and suffering (a test case needed to establish a precedent).
It is estimated that ‘Clausula Suelo’ is responsible for 90% of Spanish housing evictions over the past decade or more!
Get In Touch
Contact us today to find out how we can help you claim back thousands on your mortgage or loan.
0800 222 9600
United Kingdom Office:
1 Eagle Street, Craighall Business Park,
Port Dundas, Glasgow, G4 9XA
Elche: C/ Fernanda Santamaria, 44, 03204 Elche, Alacante
Los Alcazares: Av.Libertad 301, Edificio Europa, Bajo, 30710 Los Alcazares, Murcia