Wednesday, 19.12.2018
 Daily news from the Canaries and the islands' biggest English language newspaper on-line
Daily news from the Canaries and the islands
   Daily news from the Canaries and the islands' biggest English language newspaper on-line

Forced to play fair?
Around 425,000 existing BBVA mortgages are about to get cheaper.

Thanks to a Supreme Court ruling, the bank has announced they will begin taking steps towards scrapping the bottom line for interest rate changes as of June 30. The bank was ordered to revise their lending rates on all Euribor linked mortgages when it was found that customers were paying well over the odds for their loans.

08.07.2013 -

The banks bottom line interest rate on some mortgage contracts had been fixed at 2.8 per cent, whilst the Euribor is currently at 0.5 per cent, meaning that customers have not been benefiting from reduced interest rates.  However, as of the end of July all affected mortgages will be appropriately adjusted to the Euribor and each customer will be reimbursed any payments over and above the new rates - backdated to May 9, the date of the court ruling.  

This is not the only recent court case that has brought into question the BBVAs working methods.  A  Lanzarote couple was at the point of having their house repossessed when a Judge ruled that the banks interest rate of 19 per cent for late payments was an immoral abuse of clients and declared the mortgage contract as null and void.  

The judge went on to state his belief that banks had without doubt contributed to the current economic crisis and that, therefore, the high percentage of unemployment and many familiess reduction in economic resources could also be contributed to those same financial institutions.  The judge continued by saying that the banks greed had created the very situation that meant many were now unable to pay their mortgages and to fine them by charging such elevated interest rates for late payments was morally wrong.

The ruling was taken in line with the European Supreme Courts declaration on contracts that contain abusive clauses.

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