Stubborness of banks in off plan refunds

by Maria L. de Castro
(Algeciras, Spain)

The stubbornness of banks and the condemnation to repay interests and costs

Known already are the countless Sentences that have proliferated throughout the national territory since Keith Rule, the Erin Brocovich of Spanish brick fought in courts and in financial and political fields to get his victory in the case Finca Parcs from the hand of legal teams CostaLuz and DeCastro.

The Court of First Instance 17 of Malaga has just condemned Santander for a promotion of Aifos in the Cala del Sol promotion to the repayment of € 110,603 of principal plus interest since the deliveries occurred in 2004, an additional € 77,000 plus the legal costs.

The punishment that the Spanish banks are suffering by continuing to fight, in this and in many other cases, what is already consolidated doctrine of the Supreme Court, is almost equivalent to the amounts that in their day they admitted to account or guaranteed.

The Provincial and First Instance Courts are, almost unanimously, punishing in costs to the banks that in spite of not existing doubts of fact or of law with respect to the claim that they face, they continue opposing the payment and condemning those affected to long and tedious judicial processes, with the consequent burden that this implies for the Spanish Courts and the pockets of the taxpayers.

There are voices that speak of the need to ask the Bank of Spain or the Government to take active and strong measures to force the banks to avoid this permanent flood of lawsuits that are collapsing the Courts and diminishing the effectiveness of Justice in Spain.

These judgments, together with all recent judgments on abusive clauses in mortgage loan contracts or in foreclosure proceedings, are a sign of a new era in the way that society and judges understand financial services. It is the person, the consumer, who should be located in the center and not the balance sheets of the financial entities.

Good for Keith and his clairvoyance and determination about it. Good for society.