This week, the media in Spain is echoing the progress made on the collective lawsuit against banks abuse by applying the land clause. The lawsuit is led by ADICAE, Association of Banks, Savings Banks and Insurances Users.
Latest updates by ADICAE refer to the addition of 8 savings banks and banks to the 45 institutions they are filing a lawsuit against. ADICAE has also declared its intention to widen the lawsuit to include each banking institution in Spain.
Right now, the lawsuit has been accepted by the representative of the 11 Mercantile Court from Madrid. Sued banks include La Caixa, Banco Sabadell, Banco de Andalucía, Banco de Castilla, Credifirmo, Caja Rural de Extremadura, Caja Rural de Burgos and UNNIM.
The “land” clause —cláusula suelo— defines minimum interest rates for mortgages. This means that if Euribor is lower than the defined interest rate, mortgage holders would be unable to benefit from the Euribor drop.
This is the reason why many citizens affected by this clause are joining ADICAE in the lawsuit.