On January 20, the Government approved Royal Decree 1/2017, a Law on urgent consumer protection measures regarding floor clauses. The objective was to create a mechanism where affected clients and banks could assess the characteristics of floor clauses in their mortgage loan agreements, determining whether they met the information requirements requested by the Supreme Court. The high court considered the floor clause to be legal and applied in good faith by credit institutions. However, it also ruled that its commercialization should be accompanied by special information requirements beyond what was expressly provided for in the regulations then in force.
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 yesterday by the Commission—more than 450,000 applications approved 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 exhaustively and rigorously reviewed all cases submitted, ruling in favor or against depending on whether they met the transparency criteria established by case law.
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.
