“Cláusula Suelo” Explained
The “Cláusula Suelo” was a means by which Spanish financial institutions continued to charge a higher rate of interest than would otherwise apply if they were to follow the Euribor Rate.
On the 9th of May 2013, the Spanish Supreme Court issued a ruling which in effect said that ‘such contracts lack clarity and transparency’ and that the clauses were hidden deep in an ‘overwhelming amount of data’ saying that although not ‘illegal’, the practice is ‘immoral’.
They ruled that recompense should be made to those who have been overcharged, many Mortgage holders should receive compensation, but need professional advice to get it.
If you have a mortgage in Spanish you should check if you come under the terms of this legislation