At last the European justice system has had its say, and nothing can now prevent the Spanish justice system from ruling on the abuse of the personal income tax clause in mortgages. 

Since the Judgment C-125/18, of March 3, 2020, of the European Court of Justice, banks are obliged to inform consumers, in order to comply with their duty of transparency, about what had been the evolution of the personal income tax of the savings banks during the two calendar years prior to the conclusion of the loan contracts and, in turn, about the last available value.

According to the European Court's ruling, only by providing such prior information to the consumer can the latter have the possibility of comparing such loan interest index with other indices available in the market and thus choose his best option.

According to the European justice system, if such prior information is not provided, the IRPH clause will suffer from a lack of transparency and will be declared null and void. 

From Palomar Abogados we want to inform you that in case you file a claim with the Court on account of said abusive clause,  amount to be recovered could oscillate, depending on the amount of the loan, between 10.000 and 25.000 Euros.

For the professionals of Palomar Abogados it is excellent news that the IRPH clause can be submitted to a judicial control of transparency, regardless of the fact that it refers to an official and legal index published in the B.O.E.

In this sense, it has been judicially declared by the Court of Justice of the European Union that a Spanish Court can perfectly enter to evaluate the transparency of this clause. That is to say, no matter it makes reference to an official index, European justice allows a Spanish Court to determine that a IRPH clause is abusive if he deems  it  produces, to the detriment of the consumer, an imbalance of the rights and obligations derived from the contract. 

Recently, following the trail of the European judicial decision, numerous judgments of Courts and Tribunals have pronounced themselves in the same sense, and in a particularly forceful way the Provincial Court of Toledo has done so in its judgment 367/2020, of April 29, which has not only annulled the variable interest clause referenced to the IRPH index, with the return of the relevant amounts, but has also condemned the bank to recalculate the interest-free loan. 

For all these reasons, at Palomar Abogados we recommend that you contact our office to analyze your mortgage deed, and we will examine your situation specifically to help you recover the amount of interest that you were overcharged when you took out your mortgage loan.