As expected, the Supreme Court has issued two appeals in favor of the financial institutions, stating that the IRPH is not abusive.
The IRPH is the second index used in Spain for mortgages, after the Euribor. It is much higher than the Euribor.
The magistrates think that if a court decides that there is a lack of transparency in the application of the IRPH, it is necessary to check whether there was also abusiveness in the bank-client relationship. "That is, it must assess whether it is a clause that, contrary to the requirements of good faith, causes, to the detriment of the consumer and user, a significant imbalance of rights and obligations".
Regarding the abusivity, it is stated that the offer by the bank of "an official index, approved by the banking authority, cannot in itself violate good faith". It adds that the Central Government and several autonomous governments have considered the IRPH as the most appropriate reference index in the financing of subsidized housing. Read more.
How can we help you? Contact us now.
