Junta fines Unicaja 3.15 million euros for abusive clauses in mortgage contracts

The Junta de Andalucía has decided that Unicaja's mortgage contracts contain clauses that are abusive to its clients and it intends to fine the bank 3.15 million euros. Sources at Unicaja say the bank will appeal against the decision, on the grounds that, according to the Supreme Court, only courts of law have the power to decide whether contract clauses are abusive or not and to impose penalties.

This is not the first announcement of this type from the regional government. On 25 July it announced that it would be fining the Banco Mare Nostrum 1.6 million euros for the same reason. The decision was the result of numerous complaints from the FACUA federation of consumer associations and the Junta itself in 2013 and 2014. Unicaja was one of 20 banks reported by FACUA Andalucía in 2013 for abusive mortgage floor rate clauses. FACUA also made similar reports in other regions of Spain. In 2014 the Junta de Andalucía reported around 20 banks for the same reason.

A statement from the Junta says the fine is justified because the banks introduced abusive clauses in mortgage loan contracts and did not provide the clients with adequate information. The regional government said it had received 357 complaints from individuals during its investigation into floor rate clauses.

The figure of 3.15 million euros comprises 650,000 euros for a serious contravention of consumers rights and 2.5 million euros which the Junta claims Unicaja obtained illegally from the mortgage floor rate clauses. It is also fining the bank an extra 350,000 euros for failing to provide information to its clients. Sources at the Junta say this is not an isolated case, as it will be fining other entities as well.

In a statement in response, Unicaja insisted that its mortgages are clear, transparent and lawful.