Last year, I wrote an article about the polemic floor clause in mortgage loan contracts, a subject that has frequently cropped up in the news and is now a regular mainstay at Spanish Courts of Law. Most readers are now familiar with this concept but for those of you who aren’t, here is a brief explanation:
Spanish banks find themselves yet again in the limelight of another scandal. The Supreme Court has given them until 31st July 2013 to review the floor clauses in their mortgage loan contracts to evaluate whether or not they comply with transparency requirements. If the outcome is negative, the clause must be eliminated altogether.
