Last March 2019, the Supreme Court issued a new ruling (STS 158/2019, of March 14) regarding the marketing of multi-currency mortgages between consumers and financial institutions. As in previous rulings, the Court reiterates its position of maximum protection for consumers in cases in which this type of transactions have not been carried out with all the required guarantees.
In the case in question, the plaintiffs are a married couple with university studies and investment experience who in 2007 took out a multi-currency mortgage loan with Bankinter for the amount of 136,800 euros, in its equivalent value in Japanese yen, i.e. 22,444,776 yen.
The importance of this judgment lies in the fact that the couple’s claims were rejected both in the first and second instance, but once again, the Supreme Court has considered that the marketing of the product was not carried out correctly, overturning the judgments of both instances to rule in favor of the consumer.
The High Court again considers that the information provided by the entity in the marketing phase of the loan did not comply with the requirements established by the case law of the Court of Justice of the European Union, endorsed by the Supreme Court itself in its previous judgments dated November 15, 2017 and October 31, 2018.
The Supreme Court affirms that the breach lies in the fact that the entity provided absolutely insufficient information, which led the plaintiffs to contract without knowing the basic elements of the operation and risks of the product.
In the same way, it is worth highlighting the Court’s reiteration of the need for any entity to comply with a series of information and transparency requirements in order for the legal transaction to be considered valid. Specifically, it indicates that:
“it is essential that the bank informs the customer of the economic burden that in the event of currency fluctuation could entail for him in euros, both the payment of the amortization installments and the payment of the outstanding capital to be amortized that he would have to face in the event of early maturity of the loan or the significance that the increase in the outstanding capital to be amortized, computed in euros, will entail in the event that he intends to change from the currency to the euro. He must also be informed that the devaluation, above certain limits, of the euro against the foreign currency gives the bank the power to demand new guarantees, as well as the consequences of not providing these supplementary guarantees.”
In short, it could be said that the interpretation of the courts with respect to the controversial commercialization of multi-currency mortgages between consumers and financial institutions is peaceful. Despite this fact, the success of a procedure of these characteristics depends on an exhaustive analysis of what information was provided by the entity or, rather, what information was omitted or not provided. For this reason, at Castellucci Abogados we consider it essential to carry out a prior and personalized analysis of each case, in order to be able to establish minimum guarantees for the success of the procedure.