Spanish banks ordered to pay back mortgage ‘floor clause’ amounts

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Streets full of banks are becoming more difficult to find in Spain as branch closures continue

THE EU Supreme Court has ordered banks must pay back all the amounts overcharged to mortgage payers who had a so-called ‘floor clause’ (minimum interest rate) included in their policies.
In May 2013, the Spanish Supreme Court ruled that the ‘clausulas suelo’ (floor clauses) were illegal because they were ‘grammatically unreadable for customers’.
However, that ruling said that amounts overcharged before that date could not be returned.
Bank users associations then decided to take the matter to EU courts, which ruled on the issue on Wednesday.

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