Floor clause claims

SINCE the creation of Courts, which specialise in floor clauses, they have received more than 57,000 lawsuits regarding this matter.

This data is provided by the General Council of Judicial Power (CGPJ), and, to date, 52 such Courts have been created, with La Laguna Court the competent one in Tenerife.

But let me recap on what “Floor Clause actually means, how you know whether your mortgage loan has a Floor Clause attached, and, if so, how you can claim back the over-payments

This is a clause included within the mortgage loan with variable interest, in which the debtor is not allowed to enjoy any fall in interest rates.

The clause is incorporated in the financial clauses of the loan in the Deed of Mortgage, mainly under the topic “limit to the application of variable interest” (límite a la aplicación del interés variable), “limit of variability” (límite de la variabilidad) or “variable interest type” (tipo de interés variable).

How can I claim?

You’ll know if the Floor Clause is applied when, despite a decrease of the interest rate, your repayments remain the same.

The monthly average of the Euribor in August 2017 stood at -0.156%. It fell 0.108 points from August 2016, when the monthly Euribor stood at -0.048%. It supposes a reduction in the monthly payment of about six euros.

Consumers can already claim the repayments, collected  irregularly by the banks in terms of floor clauses that are not transparent, through the mechanism provided by the Royal Decree Law 1/2017 (I have referred to this Royal Decree in previous CW issues).

This is: those affected by the floor clause may submit the claim into their bank branch. Once received, the bank must offer the client a calculation of the sum to be refunded, or the reasons why the claim is considered not appropriate.

Once the bank’s offer is received, the consumer must state whether he agrees or not. If so, the bank will make the refund. The whole process will be done in a maximum term of three months.

The customer may decide to go to court directly. However, if the person decides to go before the extrajudicial procedure stated in the Royal Decree Law, he or she must wait until the latter is finished in order to go to court.

In the event that the client goes to court and obtains a judgement superior to what the bank proposes, the bank would pay the costs.

But if the client has not gone through the extra-judicial procedure, and the bank is cleared in the courts, he or she will have to pay costs.

How can I be paid?

The bank will return, in cash, the extra amounts paid by the client. However, it may return part in cash, and part as early repayment of the capital if you want.

If you prefer cash back, the bank will have to pay you within a maximum three-month period from the initial claim. If the parties agree on another formula, acceptance by the customer shall be hand-written, after being duly informed of the value of the alternative measure.

For this, you have 15 days to respond, but do remember to ask an experienced lawyer for legal advice.


-Mariano Zunino Siri is a lawyer registered at the Tenerife Bar Association since 1991. Email: ; Web:

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Posted by on Sep 29 2017. Filed under Business & Finance. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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