Banks including Barclays and Santander lose course action lawsuit against minimum payments
Banks including Barclays and Santander face a €5bn (£4bn) bill after a Spanish court ruled that millions of fixed minimum rate mortgages were null and void because of the “lack of transparency” in the way they were sold during the property boom.
The ruling in a Madrid commercial court comes in response to a course action suit on behalf of 15000 mortgage holders. The mortgages contain what is known as a cláusula suelo,which fixes a minimum monthly payment. So, while still a variable rate mortgage, or the bank sets a cut-off point below which payments are not allowed to tumble. Continue reading...
Source: theguardian.com