In Spain, thousands of mortgage holders are poised to reclaim substantial sums related to the costs incurred during the establishment of their loans, including notary fees, administrative services, and property valuations.

This potential for reimbursement originates from a landmark ruling by the Supreme Court of Spain in 2015, which was later reinforced by the Court of Justice of the European Union (CJEU).

The CJEU declared that clauses mandating customers to bear all costs associated with the formalization of mortgages are null and void.

This legal framework has opened avenues for millions of consumers to seek refunds of charges that were previously deemed unjustified.

A more recent CJEU ruling, issued in April 2024, clarified timeliness regarding these claims.

It states that the time limit for filing a claim begins when a judge identifies a clause as abusive, thereby establishing that there is no universal deadline; instead, it varies on a case-by-case basis.

Consumers whose mortgages remain active or who canceled their mortgages within the last five years can still file claims effectively in 2025.

Experts have indicated that this extended window particularly benefits those who secured their mortgages before 2019, as the terms of these agreements are now regarded as unlawful.

Consumers in possession of receipts or invoices related to their mortgages may have a valid opportunity to recoup expenses incurred during the loan initiation process.

Among the costs eligible for reclamation are:

Notary Fees: Borrowers can claim up to half of the notary fee if they initially paid the full amount, as it is considered a service of mutual benefit.

Property Registration Fees: Costs associated with registering the property, typically borne by the borrower but benefiting the lender, are fully recoverable.

Administrative Fees: If imposed by the bank, borrowers may claim the entire cost as these services were mandated without negotiation.

Appraisal Fees: Borrowers may also recover appraisal expenses, provided it can be demonstrated that such assessments were a requirement from the lender for loan approval.

Additionally, consumers may address various abusive clauses, including:

Floor Clauses: These clauses prevent borrowers from benefiting from decreases in the Euribor interest rate and have been annulled multiple times for a lack of transparency.

Opening Commissions: Such charges are considered abusive if they are not adequately justified or overlap with other costs.

365/360 Clause: This pricing mechanism, which is based on a year of 360 days for calculating interest, can lead to hidden additional costs for borrowers.

IRPH (Mortgage Reference Index): Due to its lack of transparency compared to Euribor, the customer’s ignorance can render this index invalid.

Late Payment Interest: Excessive or poorly explained late payment fees can also be classified as abusive.

For consumers wishing to initiate their claims, the following steps are recommended:

Document Review: Gather the mortgage deed and any invoices related to notary services, registration, administration, and appraisal.

If originals are unavailable, duplicates can be requested from the respective notary, administration agency, or Property Register.

Claim Preparation: Draft a formal complaint addressed to the Customer Service Department of the respective bank, detailing the expenses being claimed while attaching relevant invoices and documentation.

Submission of the Claim: Sending the claim via certified mail or burofax ensures evidence of receipt by the bank.

Await Response: Financial institutions have a period of up to two months to respond.

A favorable acknowledgment will result in the reimbursement of funds; however, if the claim is ignored or denied, further action may be warranted.

Legal Action if Necessary: In the event of an unfavorable response, borrowers can take their claims to court.

Although this route may be longer, success rates are notably higher with proven abusive clauses.

Consider Legal Assistance: Engaging a lawyer who specializes in banking law can streamline the process, with many firms working on a no-win no-fee basis.

This situation presents an opportunity for numerous consumers who wish to reclaim excess amounts paid in relation to their mortgages.

For those who entered into agreements before June 2019 and retained their invoices, immediate action is advised to assert their rights.