The CJEU definitively overturns the floor clauses
The European High Court recognizes the total retroactivity of the floor clauses and banks must return all the amounts overcharged to their customers.
The Court of Justice of the European Union (CJEU) has issued the final judgement on land clauses forcing banks to repay the money overcharged to customers who had included such clauses in their mortgage contracts. The ECJ therefore rejects, in time, the nullity of the ground clauses because it is incomplete, insufficient and contrary to consumer protection.
This ruling contradicts the non-binding opinion issued last July by the Advocate General of the Court of Justice, Paolo Mengozzi, supporting the Spanish Supreme Court’s (TS) theses to return the amounts collected only after May 2013.
The European High Court has avoided with this sentence a real blow to the foundations of law and like Del Canto Chambers, has recognized the total retroactivity against the opinion of Paolo Mengozzi and TS.
Now the CJEU recognizes that a null clause is also in its effects and that these cannot be limited in time, that is, not since May 2013 but since the contract is signed. As a result, banks will have to repay more than three million customers for what they have overpaid for being abusive and unfair, and will have to repay them between 5,000 and 7,000 million euros, as many experts have calculated and the Bank itself from Spain.
This is a blow to Spanish banking, which is still recovering from the bailout suffered in 2008. But the CJEU has protected the interest of the citizens against the power of the banks that Mengozzi and TS intended to safeguard.
Raul del Canto (@rauldcanto)
Lawyer at Del canto Chambers