Friday, December 3

The European Justice endorses the use of the IRPH in mortgages even if a brochure with information on the index is not presented

New European ruling on the IRPH, used in numerous mortgages as an interest rate prior to 2013. The Court of Justice of the European Union has endorsed its use by the bank even though it was not presented to the client accompanied by a detailed information brochure on its operation and its evolution.

This index thus fulfills a new judicial milestone promoted by consumers who consider that the use of this index for years in mortgages in Spain was abusive and caused thousands of euros of extra cost in the payment of interest. The Supreme Court already ruled in 2020 in favor of this index, ensuring that it was not abusive, although it had been used in a non-transparent way.

Community justice had received different requests for clarification after a previous judgment of the CJEU had left this matter in the hands of the national courts. To this new question submitted, the CJEU supports the use of this interest rate even if it had not been marketed with a brochure detailing how it worked or the impact it had on cost. “[Las directivas] allow the professional not to include in such a contract the complete definition of the reference index that is used to calculate a variable interest rate or not to deliver to the consumer, before the conclusion of that contract, an informative brochure that collects the previous evolution of that index ” , assures the CJEU in its sentence, to which this medium has had access.

The European court justifies it in that the information on the evolution of this index, now in disuse, was published in the Official State Gazette (BOE). Although, it adds a nuance, since it considers that this publication would be sufficient provided that “an average consumer, normally informed and reasonably attentive and insightful, was in a position to understand the specific operation of the way of calculating the benchmark”. However, it leaves this assessment in the hands of the national courts.

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