On December 21, 2016, the European Court of Justice ruled that the non-retroactivity of a void clause was not in accordance with European law. This clarified the previous ruling by the Spanish Supreme Court, which had deemed the floor clause void in certain cases, but without retroactive effect.
On January 20, the Government approved Royal Decree-Law 1/2017 on urgent measures for consumer protection regarding floor clauses. The objective was to create a mechanism where affected clients and banks could assess the characteristics of the floor clauses in their mortgage loan contracts, determining whether they met the information requirements demanded by the Supreme Court. The high court considered that the floor clause was legal and applied in good faith by credit institutions. However, it also ruled that its marketing should be accompanied by special information requirements beyond those expressly provided for in the regulations in force at the time.
Banks have complied with the Royal Decree-Law from the outset and have maintained constant dialogue with their clients to resolve doubts and find the best solution to their problems.
Four months later, the Royal Decree establishing and regulating the Monitoring, Control, and Evaluation Commission for the negotiation process was approved. The Monitoring Commission was tasked with collecting all information, assessing the development of the process, and evaluating its results.
The data published a few days ago by the Commission—more than 450,000 applications estimated by credit institutions, of which 87% have already received compensation in the form of cash, compensatory measures, or a combination of both—confirm that banks have acted in accordance with transparency criteria and that the objectives of the January Royal Decree have been met. Banks have thoroughly and rigorously reviewed all cases presented, ruling in favor or against based on whether they adhered to the transparency criteria established by jurisprudence.
In Spain, there is a culture of home ownership, supported by an efficient mortgage system that has allowed families to own homes under favorable financial conditions. More than 80% of Spanish families own their homes, well above European levels. This high figure allows us to appreciate the importance of our mortgage system, which must be preserved.
