GREEN LIGHT TO CLAIM AGAINST BANKS FOR THE ABUSIVE IRPH CLAUSE IN MORTGAGE LOANS
Victory for those affected: The Court of Justice of the European Union (CJEU) allows Spanish Judges to cancel the IRPH of mortgage loans if they consider it abusive due to the lack of bank transparency.
On March 3, 2020, the CJEU has released the long-awaited judgment on the abusive nature of the IRPH index. It states that the borrower must understand the operation of this index and the bank must prove the borrower’s comprehensive understanding and that the marketing has been carried out with transparency. Likewise, the CJEU urges the replacement of this index by another reference such as the Euribor.
This opens the door to those affected by the IRPH who can now sue their banks. The Spanish courts will decide, case by case, if the clause is considered abusive and therefore it is lawful to be declared null and void and replaced by another index.
The ruling of the CJEU does not consider the IRPH index per se abusive, but rather the bank’s malpractice when it comes to marketing, misinforming and including the referred clause in the loan agreement, which will have to be analyzed individually.
HOW TO EVALUATE THE BANK’S TRANSPARENCY IN THE IRPH CLAUSE
In this regard, the Court requires not only that these clauses be clear in a formal and grammatical level but also in “allowing that the medium-class consumer, duly informed and reasonably attentive and perceptive, be in a position to understand the specific operation in the calculation of the referred index rate” in order to assess the economic consequences of the same.
Firstly, they request a comprehensive definition of what this index is and, secondly, its evolution for the past two years. Practically, none of the Banks comply with these two requirements.
Everyone who has not been transparently informed should get their money back.
The Court of Justice in Luxembourg has stated that, when the clause is considered abusive, the Judge will be entitled to replace the IRPH index by any other legal index to protect consumers and prevent them from the negative effects arising from the cancellation of the loan agreement.
WHAT SHOULD I DO NOW TO CLAIM THE IRPH
Our main recommendation is to contact a lawyer specialized in bank claims who analyzes your case, the mortgage deeds and advices you in the defense of your interests. In Carlos Haering Lawyers we offer a free initial consultation to study your case in a personalized way. We will carry out a free preliminary study and will calculate the amounts, appraising the viability of your claim.
From that moment, if applicable, we will submit a formal request to the bank. The European Courts have affirmed that in all cases where the client was not duly informed on this index, any clause is considered null and void. If the Bank’s response does not meet your interests, we will start legal proceedings by filing a lawsuit with the Court in order to recover your money.
We are experts in Banking Law and in money claims. We are backed by hundreds of judgments favorable to our clients. Please contact us at +34 951 162 655 or through the online form and we will respond with complete honestly and with transparency.