Before the CJEU

Brussels' denounce of Spanish mortgages legislation confirms consumers' lack of legal protection

FACUA believes that this EC's new action is another example of the Government's defence of banks' interests above consumers needs, especially those of the most vulnerable citizens.

Brussels' denounce of Spanish mortgages legislation confirms consumers' lack of legal protection

FACUA-Consumers in Action believes that the European Commission's denounce against Spain before the Court of Justice of the European Union (CJEU) confirms consumers lack of legal protection on mortgages.

The denounce has been made public this Thursday. It is based on the lack of adjustment of Spanish legislation on mortgages to the European norm, despite the several warnings that Brussels has given Spanish Government through the years. The deadline to transpose the European law to the Spanish legislation was March 2016, but the European Directive was passed in February 2014.

FACUA considers that Brussels' denounce is another example of how the Spanish Government's keeps defending the banks and constantly forgets consumers, and what’s worse, the most vulnerable citizens affected by the crisis. This is a new European blow to Spanish Government, after the recent rulings on base lending rates and evictions.

Last December, CJEU established full retroactivity for the refund of the overcharged money due to the base lending rate, with a ruling that contradicted the Spanish Supreme Court, who in 2013 had avoided forcing the banks to refund the overcharged money before that date. Since then, FACUA keeps a website that can be joined by all consumers who have or have had a base lending rate in their mortgage to request their money back, and to find out the exact amounts overcharged due to this fraud.

These two issues, along with the lack of information given to consumers when they get a mortgage are the reasons why Brussels has decided to denounce Spain.

FACUA believes that this new step of the EC confirms what different agents, FACUA among them, have risen for a long time when facing the dramatic cases of evictions: that there was no real intention of the Government of stopping one of the most serious consequences of the crisis that Spain has been through the last few years.