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Speedier solution for abusive bank clauses

Just over a month after the EU Court of Justice ruled that Spain's financial institutions that used abusive clauses which put a cap on falling mortgage interest rates are liable and must repay the money they overcharged consumers, Mariano Rajoy's cabinet will tomorrow set out the mechanism that will allow those clients to recover money without having to go through the courts, albiet with certain provisions.

The financial institutions will be obliged to inform the clients of this procedure, which can take no longer than three months. If, during this period the bank and the client reach an agreement (which does not necessarily amount to the complete sum owing), the money will be returned in cash immediately, or in other banking products. However, for the client the mechanism is voluntary and if dissatisfied with the offer made by the organisation, the client has recourse to the courts. Should the court decide that the bank must repay a higher sum than that offered originally, the institution runs the risk of having to pay the legal fees.

The measure will pass through the parliament thanks to the PSOE which will abstain, as the socialists are satisfied they have forced the government to create a system of guarantees as well as obliging the banks to directly inform the clients concerned.

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