Archives for November, 2017

CHANGE OF FORTUNES: BANKS SET TO LOSE MILLIONS WORTH OF EQUITY RELEASE CONTRACTS

Share

Landbanki Luxembourg

A recent ruling by the Appeal Court of Bilbao -confirming an earlier ruling by the Court of First instance-is to set the ground for future cases on the so-called Equity Release mortgage loans.  Three Judges in the Basque High Court have ruled that banks -and by extension any other financial services company- that do not have a valid operating license will see their agreements declared null and void, be it mortgage loans, investment contracts or any other.

In late 2014, 20 pensioners (mostly British) bought an action to set aside 12 equity release mortgage loans -worth 6 million euros- against SLM, a Cheshire-based lender. The lender had not secured the mandatory regulatory license although they did warn they had no license to operate in Spain as, according to them, they were only providing lending for customers seeking to raise cash on their homes.

Now, the Bilbao Appeal Court has said the warning was no ‘mitigating’ factor because it misled the claimants into believing that the loan they were sold was financially secure when, in fact, most of it was invested via unregulated Isle of Man-based-dubious Premier-Group.

The relevance of the ruling, which brings an end to the suffering of the victims of this scam, is twofold: it nullifies contracts issued by unregulated companies and it fully endorses the allegations of the claimants that the widely publicized Inheritance Tax benefits were false, emphasizing that such conduct is deceitful and fraudulent.

It is believed that defunct Luxembourg-based Landsbanki Bank had lent a staggering 100 million euros in Spain to reduce death duties that thankfully will be difficult to recoup, whilst Rothschild Group could be set to lose 40 million Euros.

 

BILBAO APPEAL COURT UPHOLDS THE ILLEGALITY OF THE SLM MORTGAGES

Share

Photograph: Registro Civil

The Appeal Court in Bilbao has upheld last year’s ruling by the Court of First Instance 11 in Bilbao and determined that  mortgage loans granted by Surrenda Link Mortgage (SLM) to invest with Premier Group should be declared null and void.

The appeal ruling confirms that operating without a license is a grave infringement of one mandatory regulatory framework of great importance: the financial services sector. As a result, they order the maximum possible sanction -nullity and voidness- to those illegal activities. For the Appeal Court, acting in this manner

deprived the claimants of any guarantees, which the current legislation envisages to ensure there is complete information with regards to the evolution and situation of the financial entities so that, in this respect, they can limit or prohibit those practices or deals that increase the risk of insolvency or lack of liquidity, and reinforce the resources required to attend to those risks, thus avoiding harm to applicants…Preamble of the Stock Exchange Act of 26/1988).

The Appeal Court goes further than the original ruling and fully corroborates and endorses the allegations of the claimants that the widely publicized Inheritance Tax benefits are false, emphasizing that such conduct is deceitful.

Finally, the higher Court reaffirms the allegation by the claimants that they had no financial experience, a fact not challenged by SLM.

SLM’s choices are to accept the ruling and not interfere in the cancellation of the mortgage loans or explore filing an exceptional appeal with the Supreme Court, a possibility only accepted in very specific cases.

Litigants expressed their satisfaction over the performance of their lawyers Lawbird Legal Services.

 

BREAKING NEWS: the BILBAO APPEAL COURT UPHOLDS THE ILLEGALITY OF THE SLM MORTGAGES

Share

Audiencia de BizkaiaBREAKING NEWS

The Court of Appeal in Bilbao has dismissed totally the appeal launched by the SLM (Surrenda Link Mortgage) Madrid-based lawyers and upheld the first ruling of the Court of First Instance 11 in Bilbao.

SLM’s choices are to accept the ruling and not interfere in the cancellation of the mortgage loans or explore filing an exceptional appeal with the Supreme Court, a route only accepted in very specific cases.

More to follow in the next post.

Skip to toolbar