FACUA criticises the bank's alarmist and dishonest messages aimed at pressuring the Supreme Court

FACUA believes that the banks are more than capable of taking on the total backdated payment of the tax on mortgages. This would provoke positive effects in the Spanish economy by stimulating consumer spending.

FACUA criticises the bank's alarmist and dishonest messages aimed at pressuring the Supreme Court

FACUA-Consumers in Action believes that the banks are more than capable of covering the total of backdated payments to users and autonomous regional tax offices for the mortgage tax. The amount to date is far lower than the amount of illegal profits which financial entities have gained through their fraudulent interest clause.

To this effect, FACUA considers the alarmist and dishonest messages emanating from different voices in the banking sector to be a means of pressuring Supreme Court judges in relation to their decision on the jurisprudential turn adopted in the recent Third Chamber ruling.

The association points out that the rebate of the Document Duties tax to millions of mortgage borrowers would have a positive impact on the Spanish economy as it would stimulate consumer spending and improve the economic situation of Spanish families.

FACUA notes that in the last few years Spanish banking's profits have seen a huge increase. In the first nine months of 2018 alone, the eight largest banks have gained 13.478 million Euros. The suggestion that financial entities do not have the capacity to retrospectively take on the mortgage tax is a fallacy, the association comments.

Scandalous but not surprising

That the Administrative Chamber is reconsidering the jurisprudential turn approved a few weeks ago on the tax on mortgages is scandalous but not surprising, reports FACUA. To this effect, the association reminds consumers that in 2013, the Supreme Court already positioned itself in defence of banking interests by ruling that the banks could keep the tens of billions fraudulently charged through the base lending clause, despite finding it extortionate. It was left to the European Court of Justice (ECJ) to finally give a ruling which protected consumers and obliged the Spanish Supreme Court to change its position.

The cost of the mortgage tax has represented 947 million Euros a year since October 2014 up to July 2018. In this period, the total amount has been 3.631 billion Euros, paid by 1,564,424 taxpayers, as demonstrated by analysis carried out by the Technicians Syndicate at the Budget Ministry (Gestha), based on data from the National Statistics Institute, the Administrations for Tax Collection and the School of Registries.