One for each province without strengthening the workforce or providing more means

FACUA denounces that courts for base lending rate without minimal endowment will only benefit banks

CGPJ's plan, implemented with the opposition of the whole sector and consumers will only prevent judges from applying massively the ruling that forces banks to refund the amounts charged thanks to this massive fraud.

FACUA denounces that courts for base lending rate without minimal endowment will only benefit banks

FACUA-Consumers in Action denounces that the plan of the General Council of the Judiciary (CGPJ, according to its initials in Spanish) of creating centralised courts to manage the cases of base lending rate without strengthening the workforce or providing more means will only benefit banks. This plan will limit the rights of those consumers who decide to claim and will slow the processes down even more, instead of speeding up their resolution.

The association insists on the fact that both Spain's Supreme Court and CJEU have already declared in different rulings the illegality of this practice and, therefore, the money should be returned to those affected without further delay nor complex, expensive and slow processes.

On the 1 of June the CGPJ's plan to centralize all cases in 54 district courts throughout the State came into operation: this is, one single court per province. The plan has been implemented without providing the elected courts with the necessary extra personnel, or the material means to be able to effectively carry out their work. Also, it does not exempt these courts from handling other litigations non related to the base lending rate, so, without extra means and with the avalanche of complaints expected after the fiasco of the Government’s extra court proceeding, the saturation of the courts and the go-slow of the processes is taken for granted.

FACUA denounces that this plan has been decided against the whole justice sector, and with a clear and public opposition of all the bodies and associations of lawyers, judges and officers. In practice, this plan does neither help those affected nor speeds up the processes, and will only have the effect of helping the banks with new obstacles to compensate consumers who suffered this massive scale fraud.

The association finds this plan to be highly unfair with consumers, since there will only be a single court in each province, especially for those who have to go to move to different cities in the case their residence town does not have one of these courts. This designation by geography and without considering other circumstances such as the number of residents affected, or the number of cases handled by this court makes the plan clearly insufficient. In addition, these courts will not only receive base lending rate related cases, but also other cases of mortgages with unfair terms. This will mean the increase of the cases they have to handle without being reinforced.

In addition, the saturation of the courts will make it slower for consumers to get their money back, so they will have to invest more money on the proceedings (lawyers, financial covers, etc), which will probably discourage some.

Different lawyers associations have already reported that during the first two days of the plan, be in force until 31 of December 2017, there has been a total lack of coordination, of personnel and information.