Spain/ Supreme Court (sb) – The Spanish Supreme Court has declared various clauses, written by banks into contracts for credit and credit cards and in mortgage contracts with their customers, null and void. Some of these clauses were “improper“, “excessive “ and “confusing“, the “Tribunal Supremo“ decided. These included clauses making the customer fully liable for any losses incurred as a result of fraudulent use of their credit card or EC card. Clauses that completely excluding banks from liability if someone obtained a bank customer‘s PIN and PUC by extortion or violence have also been declared unlawful by the “Tribunal Supremo“.
Banks can no longer prohibit customers from renting out mortgaged properties by using the argument that this would, in the opinion of the banks, reduce the value of the properties concerned.
Another clause, permitting a bank to offset a negative balance in a customer‘s account with the positive balance from another account held by of the same customer (even if the customer is not the sole holder of this account) is no longer allowed. Nor is the clause which gives a bank the power to prematurely foreclose a customer‘s loan if it emerges that the borrower is going to have his assets seized or if his credit rating looks likely to fall.