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Anjum Shabbir
Anjum Shabbir
5th March 2020
Banking & Finance Consumer, Health & Environment

Analysis: “Transparency of contract terms with a reference index to calculate interest rates in mortgage loans and consequences of their unfair nature” by Francisco Pertíñez

The Spanish banking sector anxiously looked forward to the judgment of the Court of Justice in Gómez del Moral v Bankia (C-125/18), which was delivered on 3 March 2020. This case looks at the unfair nature under the Unfair Terms Directive 13/93 of terms that in variable-interest mortgage loan contracts provide the ‘IRPH-Cajas’ as a reference index.

This is an official index, published officially and periodically by the Spanish Bank, and is legally defined as the average rate of mortgage loans of a duration of more than three years granted by savings banks for the acquisition of a residential property. This index is used in around 10% of loans granted in Spain, and is in fact less favourable for the consumer than indexing on the Eu


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