Bill to refund floor clause charges without going to court

Automatic summary, not yet reviewed

1. The bill would create out-of-court ways for consumers to get back amounts overcharged through floor clauses in mortgage loans or credits, without having to go to court.
2. The consumer would first have to file a claim with the bank itself. The bank would have three months to reach an agreement and pay back; if it rejects the claim or does not answer in time, the claim is deemed accepted and becomes enforceable.
3. If the bank does not accept, it would have to turn to a conciliation before a Property Registrar or to consumer arbitration, and it would bear the full cost of either procedure.
4. The Registrar could calculate the overcharged amounts and record them: the abusive clauses would be removed and the mortgage debt reduced, or the money refunded if the mortgage is already paid off.
5. Banks would have one month to adapt and would have to set up a specialized department to handle these claims, with information available at all branches and on their websites.
6. The bill would repeal Royal Decree-Lawroyal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses. 1/2017, the previous floor clause law, although the change it made to personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. (IRPF) would remain.

Who it affects

• Consumers with floor clauses in their mortgage: They could claim against the bank and recover overcharged amounts without going to court.
• Banks and credit institutions: They would have to set up claim systems, pay conciliation or arbitration costs, and refund improper charges.
• Property Registrars: They would take on new duties: conciliation, calculating overcharges, and recording the mortgage modification.
• Consumer arbitration boards: They would step in when the bank rejects the consumer's claim.

Words worth knowing

Cláusula suelo (floor clause)

A mortgage term that sets a minimum interest rate on a variable-rate loan: even if the reference rate falls, you never pay below that minimum.

Cláusula abusiva (abusive clause)

A contract term that unfairly harms the consumer and that courts can declare void.

Novación hipotecaria (mortgage novation)

A change to the terms of an existing mortgage, recorded in the Property Registry.

Conciliación registral (registry conciliation)

A meeting before a Property Registrar so the parties can try to reach an agreement without going to court.

Arbitraje de consumo (consumer arbitration)

A system to resolve disputes between a consumer and a company through an award from an arbitration board, without going to court.

royal decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries