Sentence: European Justice rules that the judge controls whether the IRPH is abusive and relieves the bank
Mortgages: consumer associations foresee a flood of claims after the IRPH ruling
Benchmark Mortgage Loan
It is an indicator of mortgage loan interest rates and is prepared by the
Bank of Spain
This has been operating since 1994 and is officially called the
Average Rate of mortgage loans for more than three years for the acquisition of free housing
According to the definition given by the Bank of Spain, it is calculated as "
the simple average of the
average interest rates
of the loan operations with mortgage guarantee for a term equal to or greater than three years for the acquisition of free housing initiated or renewed by the Banks and boxes of savings".
In 2013, when the
collapsed due to Mario Dragui's monetary policy of rate cuts, the European index
did not fall below 3%
This made the mortgage referenced by the IRPH
cost 150 euros higher on average
The consumer associations denounced as they assure that the conditions linked to these products were not clear.
To find out if a mortgage is referenced by this index, you have to
look at the mortgage deeds
and go to the interest or variable interest rate headings.
Another way to find out if the loan is governed by the IRPH is to check the mortgage receipts and find out
if we pay more than 2% interest
If this is the case, our mortgage and the expenses generated retroactively can be appealed.
On March 3, the Court of Justice of the EU (CJEU) ruled that
the IRPH was an index that could be traded abusively.
Therefore, he urged the Spanish courts to study the conditions and if they came to the conclusion that they are abusive, they could replace them with a legal index applicable in a supplementary way to protect consumers
The Supreme Court should have handed down a sentence
after the CJEU decision but this was postponed from September 30 to October
due to the pandemic.
The European court recalled that
the IRPH was less advantageous than the Euribor
, used in 90% of the mortgage loans signed in Spain.
The IRPH accounted for less than 1% of mortgages at the beginning of 2020, in the past it was 10% of the total.
between a mortgage loan that has the Euribor as a reference and one that is governed by the Spanish index reaches
between 18,000 and 21,000 euros
The first judgments in this regard in Spain, issued in the courts of Lleida and Burgos, cancel the mortgage index and replace it with the Euribor.
"It is not proven [that] the defendant entity provided specific information regarding the scope or operation of this type of reference by virtue of which they could assess whether it was interested in the loan with this type of reference or a loan referenced to Euribor", concluded a of the sentences.
Precisely that "contractual clauses must always meet the requirement of clear and understandable wording" was also indicated by the CJEU.
Consequences for banking
In the event that justice ruled in favor of consumers,
banks would face costs of between 7,000 and 44,000 million euros,
according to a Goldman Sachs report prepared before the CJEU ruling.
At present the entities that have mortgages governed by the aforementioned index are:
(through its mortgage subsidiary UCI),
La Caixa, Unicaja, Abanca
, among others.
According to the criteria of The Trust Project
CaixaBank-Bankia merger, guide for 20 million customers
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