surinenglish

Favourable ruling brings hope for other Landsbanki claimants

File photo of those effected by misselling protesting in Marbella.
File photo of those effected by misselling protesting in Marbella. / Josele
  • When the Icelandic bank went bust in the 2008 crisis many expats found the complex loans they had taken out meant their assets were at risk

There is renewed optimism among some 160 couples and individuals, most of them British expatriate residents in Spain, affected by alleged misselling by a collapsed Icelandic bank.

At the end of March a court in Malaga finally found in favour of one couple who had taken out one of Landsbanki's highly complex financial products sold to expats. These were based on remortgaging a home as a way of securing a loan which was then used to buy other financial products. Customers faced financial ruin when Landsbanki went bankrupt in the 2008 financial crisis as paying off the loan to the bank in part was confusingly tied up with the ongoing success of the bank itself.

Despite setbacks in court for some early claimants, those affected are now being defended by Marbella lawyer Ignacio Infante and have joined forces in an association to defend their rights. Infante says the original products should never have been offered to pensioners in the way they were.

The recent ruling in favour of the one couple paves the way for possibly more favourable decisions in the future in this long-running story.

The Malaga court has cancelled the debt that the affected British couple had.