Multi-currency mortgages are a product in which the customer contracts a mortgage in euros, but loan repayment installments and capital calculations are periodically calculated in currencies other than the euro; whether the yen, the Swiss francs or others.
The arguments put forward by financial institutions between 2006 and 2008 in our country to "put" them to the clientele, was that the Euribor was reaching very high values and that a constant in that operation was foreseen, financial institutions begin to market multi-currency mortgages, mentioning the advantages of reducing the interest rate without highlighting the risk of betting against the devaluation of the euro in the middle of the economic crisis.
In this way, everything that lower the euro against the currency chosen for that calculation, is a loss for which the mortgage contracted, being the case that today many people, having paid for many years of the quotas to the ones that were obliged, must in an amount superior to the one that received when contracting the mortgage.
multi-currency
How these procedures are currently resolved in the Courts
Faced with this abuse, the Spanish courts have ruled, considering that we are dealing with a derivative instrument to which the MiFID is applied, a European standard that protects the investor (very demanding in terms of prior information to be received by the affected party. things the Supreme Court, in a ruling of June 30, 2015, sets the basis for those affected by this type of mortgage to defend their interests and to request the nullity of the abusive effects of the same, based on the following:
That multi-currency mortgage is a complex financial instrument that requires a special duty of information to the client.
The customer profile is Retail and therefore must be protected as such.
That the Institution has violated national and community regulations, failing to comply with the duties of information and delivery of complete and accurate documentation on the operation, nature and risks of the operation. (including, it has violated the Stock Market Law, whose requirements regarding the information are superior).
The violation of the rules does not represent a mere administrative infraction by the financial institution, but supposes to declare null the multi-currency clause, due to the error in the consent caused to the client.
That an individual receiving his income and having his expenses in euros, and who lacks academic and financial training in relation to the foreign exchange market, would not consciously assume the possibility of more duty than he receives, and of being obliged to pay fees whose quantification can not know.
The consequence of this jurisprudence is that we are not dealing with a product for retailers, and that in a large number of cases, if not in almost all cases, the non-compliance of the banking entities; of information and evaluation to the client, supposes that the will and consent of the contractors was flawed.
In other words, if you have a multi-currency, and you are not an expert, nor informed or evaluated properly, in accordance with the Securities Market Law and the European law, which is mandatory law, your bank may be ordered to repay the amounts overcharged, having been calculated in other currencies and not in euros, without having to repay the loan in advance, declaring the partial nullity of the contract without affecting the loan itself, which would remain as if it had been granted in euros.
The judges are giving reason to the people in front of the banks declaring the partial nullity of the deeds and the refund of the excess paid.
Free Feasibility Report
Based on the documentation provided by the client, we prepared a study conducted by our lawyers and economists, which allows us to know the feasibility of your case, to check what arguments we have to get the nullity of multi-currency mortgage. This exam is free.
After completing the report, if you wish to contract the claim. We inform you that the hiring would be without advance amounts on account to the office as attorney's fees until the end of the file.
Routes of Claim:
Extrajudicial Way. Negotiation with the bank in order to obtain the elimination of the mortgage multi-currency of your mortgage loan, and if appropriate, the amounts unduly paid.
Judicial Highway. Interposition of Individual Civil Demand until final sentence. You will not have to pay amounts on attorney's fees because we charge in this case, against results, to success. This action is aimed at the cancellation of the multi-currency clause of your mortgage loan with all the consequences of the recalculation to euro
