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Banking Win (Again .... rains, it pours)

regular Senate rejects the terms "ground" of mortgages

and adopts the approach of the Bank of Spain on the impact of this measure on accounts of financial institutions

With a total of 120 votes in favor, 132 against and one abstention, the full Senate has refused to include an amendment in the Law on Protection of Consumers and Users to legislate and regulate the clauses " ground "of mortgages. The bill was rejected after the September 23, 2009 the Plenum of the Senate unanimously approved a motion to demand that the Government measures to prevent abuse of the banking institutions in the reviews of mortgage loans.

The outcome of the vote means the Senate opts for hosting the conclusions issued by the Bank of Spain in a report that warned that the elimination of the terms "ground" of the mortgages would have a negative impact on the accounts of financial institutions . The Bank of Spain prepared this report in November 2009 at the request of the Senate.

These clauses are to establish a "soil" for interest rate that sets a minimum that you can download and prevent users to benefit from the lows of Euribor. The mortgages also have clauses "ceiling" , but while it is usually around 10% and 12% interest, the soil is 3% on average, although in some cases is fixed at 4% and even at 5%.

From the Association of Users of Banks, and Insurance ( Adicae ), its president, Manuel Pardos regretted that finally the Senate "has opted to defend the interests of the banking sector, rather than protect consumers' . Pardo noted that the impact of these clauses on consumers is "overwhelming" because of the 4.4 million users have connected to a mortgage in the past four years, according to INE data, between 1.5 million and 3.1 million suffer from the "soil" assume that annual losses could reach 6,000 euros .

Adicae English also indicated that many are facing foreclosure of their homes for non-payment problems and, moreover, the English courts are full of lawsuits filed by customers against banks mortgages for alleged abuses committed these clauses. Source

.: http://www.consumer.es/web/es/vivienda/