The Spanish judges will be able to paralyze the foreclosure processes in order to analyze if the clauses of the agreement are abusive for the consumer. The Minister of Economy and Competitiveness, Luis de Guindos, declared this in two parliamentary answers within the control session in Congress.
(…) “We will incorporate the sentence from the European Court of Justice in whole; we will modify the procedure so as to allow a suspension process so that the judge may consider if there are abusive clauses, and we will also define the term “abusive clauses”, Guindos assured.
In spite of this, the socialists and the Catalans demanded that the Government paralyzes all foreclosures from now on until the modification of the norms has taken place.
The Government has carried out a draft of a law against evictions and plans to include the modifications during its processing. But Guindos made it clear that the mortgage law is valid and that there are no plans of reforming it completely. In his opinion, the sentence “does not declare the Spanish mortgage law illegal nor does it disqualify it”, but it “declares that the Spanish law does not comply with the Directive on consumers”, he declared.
In reality, there are many abusive clauses that banks are presumably applying, such as the late payment interest rates.(…)