Why there are so many claims against banks
Banks in Spain are far more closely supervised today than a few years ago. Changes in the law, court rulings against the banks and Spain’s mortgage lending law, the Ley 5/2019, reguladora de los contratos de crédito inmobiliario, have made abuses harder. Even so, they still happen.
From the late 1990s until recently, the picture was very different. A large share of the people who bought a home in those years signed mortgage deeds with clauses that the courts have since declared unfair. It was consumers’ own claims in the courts that got those clauses struck down.
What it means for a clause to be unfair
A clause is unfair (abusiva) when the bank imposed it without negotiation and it creates a significant imbalance against you. This is governed by Spain’s consumer protection law, the Ley General para la Defensa de los Consumidores y Usuarios, which implements a 1993 European directive on unfair terms. A clause can also be struck down if it is not transparent, meaning it was not explained to you in a way that let you understand what it would cost you.
If the judge declares a clause unfair or not transparent, that clause is void. Everything must be as if it had never existed, and the bank has to refund what it charged under it, with interest. The rest of the contract remains valid.
The products most often claimed
- Mortgages: arrangement costs, the floor clause (cláusula suelo, a minimum interest rate), disproportionate default interest, early termination for non-payment, charges and clauses on stamp duty (impuesto de actos jurídicos documentados). I explain this in detail on the mortgage claims page.
- Revolving credit cards: credit granted quickly, sometimes without checking whether you can repay, where the monthly payment barely covers the interest. The courts strike down many of these contracts under Spain’s anti-usury law of 1908 (Ley de Represión de la Usura) and consumer law. You will find more on the revolving credit card claims page.
- Charges and insurance: fees with no real service behind them and insurance taken out as a condition for getting the loan.
Claiming realistically
Not every clause that seems unfair is void, and case law on some of them is still changing. That is why I study each contract on its own before recommending anything. If I see that your case has little chance or that what you would recover is not worth it, I tell you so clearly.
Before going to court you have to claim from the bank. Since 2025, the Ley Orgánica 1/2025, de medidas en materia de eficiencia del Servicio Público de Justicia (a law on the efficiency of the justice system) generally requires an attempt at negotiation before a civil claim is filed. I make sure that step is done correctly, because if it is missing the claim may not be admitted.
Time limits also matter. The point from which they run for claiming back costs or overpayments has been clarified over time by the Court of Justice of the European Union and the Spanish Supreme Court (Tribunal Supremo), and it depends on each case. If you have any doubts, it is best to have it reviewed as soon as possible.
