Litigation – Banks & Insurance Companies

Litigation against entities such as Insurance companies and Banks

Our lawyers have handled many litigation claims against banks and insurance companies. In addition, against accountants, occasionally solicitors, and financial advisers.

All of these should have a professional liability insurance policy. Although sometimes as financial advisers are not regulated in Spain they do not. If you sue a company for litigation claims – banks, insurance companies with professional liability insurance, you usually have more chance of getting your money back. It is no use winning a case if the company is not solvent.

Banking Law

Examples of litigation claims cases -banks, insurance companies are a Bank selling you preferential shares which are now illiquid. Also Floor Clause or “Clausa Suelo” cases in mortgages. Mortgage floor clauses are the clauses put in a mortgage deed by some banks. These meant that when interest rates went down the bank retained a minimum floor clause, so customers paid more interest. They are seen as “abusive clauses” against customers. Thus banks should pay back the client everything they overpaid as a result of this, if a legal claim is made. There are 2 different issues:

Bottom Clauses

These were declared illegal by the European Courts. You can ask the bank to erase this clause and recover all the money paid as a consequence of the execution of the bottom clause.

Expenses for Setting Up the Mortgage

When you set up a mortgage in Spain you have to pay all the expenses (notary fees, land registry fees, stamp duty etc). The Supreme Court decided that this is an abusive clause as the beneficiary of the mortgage is the bank . You have to pay half Notary fees and the Stamp Duty, but can claim back Land Registry, Solicitor and Valuation fees.

We can help clients checking what the Bank suggests. However usually, the Banks are not willing to pay and we can help clients in suing a Bank.

The first thing is to check whether there are abusive clauses in your mortgage so we need a copy of the mortgage deed or the “Escritura de prestamo hipotecario”.

Claims against Insurance Companies

We can help you make a claim against large companies such as insurance companies (who often refuse to pay out on a claim or pay only a significantly reduced amount). Unless they are forced to. This sometimes happens after someone dies and there is a mortgage life insurance and a claim.

Or when there is a house fire and a lot of damage. Sometimes we find that the Insurance company offer pennies, for example. In addition, we have had many cases dealing with an insurance company after a car or bicycle accident or for medical care.

Negligence or Misrepresentation

Molina Solicitors are able to handle both civil and criminal cases. Often we deal with negligence and misrepresentation. Such as financial companies who misadvised you. Or a financial adviser selling you a product that has halved or worse due to extortionate fees.

We come against this time and time again. However, the problem is when a company sued is closed down. Or the directors disappear. Especially to the UK, as we cannot sue in another jurisdiction. However Banks and Insurance Companies in Spain are generally easier to sue as they are big solvent companies. We need you to provide all the necessary paperwork, proof for the claim. For instance, contracts and proofs of payment. The same applies against Banks.

Please contact us if you would like to discuss a matter such as above with us.

Our Litigation – Banks & Insurance Companies services