I do not know what you think, anyway Congress has to approve it, but if it goes ahead it seems that banks will have to seek other tricks to gain right?

This type of clause provides that in the writings of some mortgages there is a paragraph which stated that although the Euribor lower and lower, the minimum rate to be applied shall be 2%, 3% or even 4.5%.

The block Senate urges the Government to remove the soil clause mortgage:

• The Upper House plenary session this morning approved a motion by the parliamentary group in which the Government claims the implementation of measures to prevent the abuse of some banks in the review of mortgage loans. The ground clause, which prevents down mortgages, has focused criticism from consumer associations in recent months.

• The initiative passed the Senate enforces amended text of the General Law for Protection of Consumers and Users (Royal Decree 1 / 2007 of 16 November), which provides for exclusion of unfair terms.

• It also calls for improving consumer protection in financial services proceeding to ask the Bank of Spain the development and referral within three months of a report on the existence of clauses in mortgage contracts that limit the rights of users , identified the lack of reciprocity and proportionality.

Institutions know that never reach the ceiling of 10% set their mortgage contracts, along fixing soils of 3% and 5%:

• In addition, claims to establish the effective translation of declines Euribor quoted at 1.247% – the share of mortgages, so that people look better when the Euribor contracts fall as the current rates.

• Senator the DB by Segovia, Francisco Javier Vazquez, was pleased to be able to reach an agreement that will benefit two of every three citizens who have mortgages, if the Government complies with the constitutional obligation to implement the mandates Parliament.

• During his speech, echoed consumer groups and users for months denouncing the existence of mortgage terms that prevent users benefit from as low as Euribor today, because many of the contracts signed in ceilings years contain 14% or 15%, that financial institutions know that will never be met, while the soils were between 3% and 5%.

A non-advertised

• The popular senator criticized that such clauses did not contain advertising of loan contracts and in many cases were not warned consumers, being able to have incurred a lack of transparency in the inclusion of clauses on the type of imitative interest “.

• Thus, the popular parliamentarian denounced the practice of some financial institutions, with at least dubious interpretations of legislation to protect consumers and users, prevent impact contract Euribor downs of mortgage loans.

• “These practices may be considered unfair within the banking sector, since its purpose is to prevent mortgage fees are reviewed in their entirety Euribor declines,” he said.

• Vazquez warned that such practices may violate the General Law for the Protection of consumers and users that establishes the exclusion of unfair contract terms.