Lawyers acting for a Jyske customer have filed a petition against Jyske Bank to declare foreclosure proceedings null and void,on grounds that the valuation was carried out by an unlicensed valuation company, Gibsons Chartered Surveyors.
And whilst the company’s legality was not put under question, their ability to legally provide valid valuations for mortgage loan purposes in Spain was and therefore, acting lawyers have requested, initially, that foreclure proceedings are halted and annulled and will, at a second stage, apply for the mortgage loan contract to be set aside.
Lawyers acting for the bank have contested the petition by claiming rather confusingly that Jyske Bank A/S London Branch is not Jyske Bank A/S Denmark nor Jyske Bank Gibraltar, and that as a result, they do not come under Spanish laws. This has proven to be a lie.
Also, they have not however contested the fact that only companies authorized by the Bank of Spain can provide valid valuations and insist that, as the loan was “granted” in London, Uk laws apply to the loan.
The repercussions of this could be enourmous for Gibson Chartered Surveyors have worked for Barclays Bank Plc, Newcastle Building Society, Norwich and Peterborough Building Society, Credit Suisse (Gibraltar) Ltd, and ABM Amro Bank when giving out, presumably, hundreds of mortgage loans in Spain.
Interesting and one would think that this is a complicated legal matter and so the wranglings go on. European citizens must have a right of jurisdiction somewhere, they cannot nor should they be pushed from pillar to post. Looking at this logically, as the mortgage was signed in Spain with a Notary Public on a Spanish property, then one would assume that Spain was the correct jurisdiction. Is it any difference to Rothschild also based in the UK carrying out mortgage loans in Spain, will they say that the Spanish courts have no jurisdiction over the matter. As has been said it will be interesting to hear the courts decision. One has also to bear in mind that banks and other institutions on realising that they are under the cosh, cry wolf and always fall back on the jurisdiction issue.
Doesn’t make sense to me either. If Jyske Bank’s lawyers feel the Spanish courts have jurisdiction over the foreclosure, then surely the Spanish courts have jurisdiction over the mortgage. They cannot have it both ways.
An interesting topic for discussion. From what I have read and understand it is not that the jurisdiction is challenged but the law applicable to the mortgage contract. As we know jurisdiction and law applicable are not the same thing. If Jyske Bank lawyers are challenging the law applicable as that of the English courts then should they have not engaged an English solicitor/lawyer for his opinion as to whether the Mortgage Contract conforms to English Law. For example, in all cases like these the mortgagee should be instructed by an English solicior and have the contract explained to him in detail, he then has to sign a declaration that he fully understands the details of the Mortgage Agreement he is entering into. Any Bank or mortgage lender should not proceed with the contract unless he has this. This is a very important document and the regulations have been implemented to safeguard the lender. The court in Spain should suspend any foreclosure proceedings until they have a copy of this. I think this is important for the Spanish court.
The lawyers for Jyske Bank A/S “London Branch” claim that Jyske Bank A/S is operating under the freedom to provide banking services in Spain, but not the London branch (really strange), who they claim does not operate in Spain -under no circumstance -even though they lend on Spanish property.
The funny thing is that they then use the parent company in Denmark to send threatening letters or the Gibraltar branch to prepare POAs for litigation.
Jyske Bank A/S falls under the provision of Directive DIRECTIVE 2006/48/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 June 2006, relating to the taking up and pursuit of the business of credit institutions, and has to comply with those “reserved” regulations by the Host country, which is Spain.
If they do not agree, then can go to the Bank of Spain for confirmation (which they should do to protect their position) and where negative, the European Court of Justice who would have the ultimate word. Meanwhile, all foerclosures on their loans granted with a non-licensed valuation company have to be stayed.
The same applies to mortgages granted by Rothschild, Landsbanki, Sparekassen Lolland, SLM Funding and all others mentioned in this post.
I could not agree more with these comments. What are these lawyers thinking about. Jyske Bank are operating in Spain that is clear, is it not so that the Spanish courts have already decided they have jurisdiction under this matter and therefor the law applicable to the mortgage contract is Spain. Is it not also a fact that if one has a foreign valuer not registered in Spain acting for the bank, then the valuations could be open to abuse. I do not know how the valuations were conducted, however for a Spanish registered valuer, the value is primarily carried out with the cost of building, perhaps they take into account the market conditions, however this is of secondary importance. I presume therefor that Gibsons Chartered Surveyors has valued the properties purely on market forces, if this is so then it is a very dangerous practise and not one that should be used for the purpose of a mortgage. Were Jyske banks not aware of this.
Some really interesting comments are coming out of this post which is nice to see the interest that this web site is receiving. As a matter of interest as Landsbanki was mentioned in one of the comments you might want to read the following the attached link in respect of Landsbanki. One wonders what the world is coming to when the French & Spanish Landsbanki victims are trying to be silenced by the threat of legal action by the Landsbanki Luxembourg liquidator a woman called Hamilius. Evidently the Landsbanki lawyers feel that there is a criminal complaint to be answered by this woman and have studied very closely the evidence they have. Now as Hamilius has her back to the wall comes out with a contra suit, by issuing proceedings against the Landsbanki groups lawyers for libel. She then has the cheek to say she is issuing proceedings on 180 victims for attempted blackmail and slander. How on earth is she going to serve 180 writs on people who may have not in any way slandered Hamilius. It reeks of someone who does not know what time of day it is, she does not know her ass from her elbow. What a sorry woman she must be.
http://www.wort.lu/en/view/landsbanki-liquidator-to-sue-victims-group-for-defamation-50ed90e5e4b0f41b467d046a
Whilst on the subject of banks the attached link will be of interest. This relates to the UBS new head of investment banking Ndrea Orcel, who admitted to MP’s & peers that bansk had become “too arrogant,too self convincing” in the run up to the banking crisis and must undergo sweeping cultural changes. Something we have allknow for a long time, however it is comforting to note that one of their own agrees with this analogy. Also the attached link refers to employees of the Halifax Bank of Scotland Branch in Reading being charged with conspiracy to corrupt. There seems little doubt that the banks mentioned on this web site had and still have the same mind set, unfortunately we have all been caught out.
m.guardian.co.uk/business/2013/jan/09/top-ubs-banker-attacks-city-culture
Great looking girl that Yvette. Bet she has lots of admirers, I think I have just become another one. Then again from the comments I have read on ice log perhaps, a wolf in sheeps clothing, you know the saying “you can’t make a silk purse out of a pigs ear” These English sayings are good;
What happened with the petition? Are mortgages that have valuations that were done with a valuer that isn’t registered/authorised with the Bank of Spain enforceable?
Hi Nick, Thanks for your message.
We made an enquiry with the BES (Banco de España) and they indicated that valuations made by Spanish registered banks should necessarily be carried out by Bank of Spain-registered valuation companies, and not otherwise. So foreign banks operating in Spain under the freedom to provide services system did not need to comply with this regulation.
Hi Nick, Thanks for your message.
We made an enquiry with the BES (Banco de España) and they indicated that valuations made by Spanish registered banks should necessarily be carried out by Bank of Spain-registered valuation companies, and not otherwise. So foreign banks operating in Spain under the freedom to provide services system did not need to comply with this regulation.
Ah ok. Didn’t Jyske have a Spanish registered office? Or was that just a branch under the freedom to provide services?