Spanish Banks Ordered to Repay Customers Over Unfair Mortgages
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BBVA, one of Spain’s largest banks, said it expected a European Court of Justice ruling on Wednesday to reduce its profit by about 404 million euros. CreditAntonio Heredia/Bloomberg
MADRID — Europe’s highest court ruled on Wednesday that customers of banks in Spain can reclaim billions of euros because lenders did not pass on savings from interest rate cuts on variable-rate mortgages, sending shares in several of the country’s top lenders crashing.
The ruling centered on the use of a “floor clause” in Spanish mortgage contracts during the aftermath of the global financial crisis. Such agreements meant that the interest rate on an adjustable-rate mortgage was always held above a predetermined level, regardless of how low central bank rates fell…
Spanish Banks Ordered to Repay Customers Over Unfair Mortgages
