The Government will now have to revise the legislation on clauses in mortgages.

The European Court of Justice has ruled that the law here in Spain does not sufficiently protect consumers and therefore the court does not support the directive 93/13/CE
The ruling follows  a request from a judge in Barcelona regarding a case from 2007 in which a borrower who had become unemployed was evicted when he could not pay his mortgage to the savings bank Caixa Cataunya. The Bank applied an interest rate of 18%, which among other things allows the borrower still has a debt of 40,000 euros to the bank despite the property for the sale of 50% of the original value
The ruling means that Spanish judges are not obliged to issue eviction orders, as has been the case in accordance with applicable law. It also forces the government to make several changes in the law to adapt to the Spanish laws for the EU Directive.
 

jmackie@costadelsol.st