All business owners know that the last working day of the month is Social Security’s big payday and like clockwork, a chunk of their earnings disappear from their bank accounts. Every single one of my clients has heard me say the words, “if there is ever any bill you cannot pay, make sure your Social Security contribution is not one of them”. Why do I make a point of highlighting the importance of paying Social Security contributions on time? Well, simply put, because the consequences are quite harsh if you incur a debt with the Administration.
The Spanish Supreme Court has ruled in favour of OCU (Consumer Organization) by manifesting that Banco Popular’s floor clause to be null and void. This is another battle OCU has won against one of Spain’s leading banks following up from sentences in 2013 that ruled against BBVA, Abanca and Cajamar.
If you have been following this particular issue that is rampant in Spanish banks, you would know that during the property boom, limits were placed within clauses of mortgage loans to stipulate a minimum interest rate throughout the life of the mortgage. This means that if the interest rate were to fall below the stipulated minimum or floor clause, the holder would not benefit because the bank would charge the “agreed” floor clause. I say “agreed” simply because most holders were not properly advised of the existence or the meaning of this clause in their contracts.
