Banks across Spain are busy getting ready for an expected avalanche of customers seeking refunds on mortgage overpayments.
Last week, the national government approved strict rules for banks returning money to up to 1.4 million people who paid too much between 2009 and 2015 when lower interest rates weren't passed on. This follows a European court ruling.
To claim, a customer must have had a 'floor clause' (cláusula suelo) in their contract and the bank agree that it wasn't explained properly.
Lenders have up to one month to organise their internal systems and then three months to inform customers. They will publicise the potential refunds but not contact affected clients individually. If a customer feels they are due a refund they should approach their bank, where an offer with interest included will be made. If no agreement is reached with their mortgage provider, a customer can still take it to court.
Local Unicaja Bank affected
Malaga-based Unicaja has set aside 130 million euros for the payouts, while others have made provisions for a lot more. Sabadell has put aside up to 490 million euros while BBVA has allocated 404 million euros.