Bankinter Bandidos!
Aug 17th 2011, 7:18 am
#1
Forum Regular
Thread Starter
Joined: Jun 2011
Posts: 42
Bankinter Bandidos!
BANKINTER BANDIDOS!
In EWN last week was an article entitled ‘Are banks loosening the screws on mortgages’ where it was stated that, among others, Bankinter have introduced a new product ‘Hipoteca Sin Mas’ (Mortgage nothing more!) and I’m wondering if this is an attempt on their part to deflect publicity from their previous mortgage ‘con’ the ‘Clip or Swap Hipoteca’.
This was an addition to the mortgage contract for thousands of their customers who, unknowingly, were conned into paying almost double the interest repayments on their mortgage, which was included in the mortgage documents for the lawyers nominated by Bankinter to confirm as ‘all perfectly normal’.
The ‘Clip’ or ‘Swap’ is a complex financial instrument known in high finance circles as a ‘Derivative’ and has traditionally been used by corporations with large numbers of lawyers, accountants and financial experts on their staff. Put simply, it protects the client from increases in interest rates, but what Bankinter never explained was that in the event of low interest rates the client has to make up the difference. It sounds like a fixed rate mortgage but is far more complex as it takes up six pages of closely typed Spanish legalese, separate from the mortgage contract.
For Bankinter to include it in their mortgages has been described as ‘totally misleading’ by The Spanish Association of Bank Users and ‘abusing the trust and inexperience of their clients’. The Association has also apparently obtained a court judgement voiding the contracts, but that doesn’t phase Bankinter, Oh No! even though they have lost well over a hundred court cases regarding mortgage ‘clips’ they still insist that every case go to court rather than cancel all the contracts outright.
As it costs over €15,000 on average to cancel a ‘Clip Hipotecario’ (even more €40 - 50,000 for a commercial mortgage) and as Spanish Lawyers don’t understand the concept of ‘No Win - No Fee’ and insist on cash up front, most people cannot afford to go to court to get their money back.
Even though Spain’s Ombudsman has condemned them Bankinter continue ripping off their clients, and Banco de España, supposedly responsible for overseeing Spain’s banking practices, seems like a toothless tiger as far as Bankinter are concerned.
The best advice is: never sign any contract in Spanish without showing it to your own, independent, lawyer first, particularly if it’s an addition to your mortgage, and
Whatever you do, never go anywhere near Bankinter for anything.....!
This is one of many websites dealing with this problem:
http://www.noclip.es/?xg_source=msg_mes_network
In EWN last week was an article entitled ‘Are banks loosening the screws on mortgages’ where it was stated that, among others, Bankinter have introduced a new product ‘Hipoteca Sin Mas’ (Mortgage nothing more!) and I’m wondering if this is an attempt on their part to deflect publicity from their previous mortgage ‘con’ the ‘Clip or Swap Hipoteca’.
This was an addition to the mortgage contract for thousands of their customers who, unknowingly, were conned into paying almost double the interest repayments on their mortgage, which was included in the mortgage documents for the lawyers nominated by Bankinter to confirm as ‘all perfectly normal’.
The ‘Clip’ or ‘Swap’ is a complex financial instrument known in high finance circles as a ‘Derivative’ and has traditionally been used by corporations with large numbers of lawyers, accountants and financial experts on their staff. Put simply, it protects the client from increases in interest rates, but what Bankinter never explained was that in the event of low interest rates the client has to make up the difference. It sounds like a fixed rate mortgage but is far more complex as it takes up six pages of closely typed Spanish legalese, separate from the mortgage contract.
For Bankinter to include it in their mortgages has been described as ‘totally misleading’ by The Spanish Association of Bank Users and ‘abusing the trust and inexperience of their clients’. The Association has also apparently obtained a court judgement voiding the contracts, but that doesn’t phase Bankinter, Oh No! even though they have lost well over a hundred court cases regarding mortgage ‘clips’ they still insist that every case go to court rather than cancel all the contracts outright.
As it costs over €15,000 on average to cancel a ‘Clip Hipotecario’ (even more €40 - 50,000 for a commercial mortgage) and as Spanish Lawyers don’t understand the concept of ‘No Win - No Fee’ and insist on cash up front, most people cannot afford to go to court to get their money back.
Even though Spain’s Ombudsman has condemned them Bankinter continue ripping off their clients, and Banco de España, supposedly responsible for overseeing Spain’s banking practices, seems like a toothless tiger as far as Bankinter are concerned.
The best advice is: never sign any contract in Spanish without showing it to your own, independent, lawyer first, particularly if it’s an addition to your mortgage, and
Whatever you do, never go anywhere near Bankinter for anything.....!
This is one of many websites dealing with this problem:
http://www.noclip.es/?xg_source=msg_mes_network
Aug 17th 2011, 7:55 am
#2
Banned
Joined: Dec 2006
Location: Living in a good place
Posts: 8,824
Re: Bankinter Bandidos!
Not just Bankinter. Read a report last year that most banks have sold these mortgages. Whilst interest rates have dropped many have had to pat thousand more per year in increases.
