March 3th: The date for the IRPH mortgage ruling

On March 3th, the judgment of the Court of Justice of the European Union on the abusiveness of the IRPH clause will be known. If justice gives the reason to the users, they can claim the return of what they have overpaid.

What the IRPH rate is? 

IRPH -Mortgage Loan Reference Index- has been used as a reference to calculate the rates for more than half a million mortgage loans in Spain, instead of the EURIBOR rate. 

Thus, Spanish banks have recognized a total of EUR 17,430 million referenced to the index. CaixaBank is the most affected bank. It is followed by Santander, BBVA, Banco Sabadell, Kutxabank, Liberbank and Unicaja. 

What is the problem with IRPH? 

The fundamental problem lies in the lack of transparency when marketing mortgages with this index. After several discrepancies in the Spanish Courts about the legality of the IRPH, the Spanish Supreme Court ruled in 2017 in favor of the banks. However, the legal battle continued and a court in Barcelona requested a preliminary ruling from the CJEU – Court of Justice of the European Union-. 

Last September, Maciej Szpunar, Advocate General to the European Court of Justice, made his non-binding legal opinion public that IRPH could fall foul of the EU’s directive on unfair terms in consumer contracts, so can be challenged in court. 

When will the CJUE court decision be announced? 

The CJEU on March 3 will announce the Court decision. The outcome remains uncertain. Depending on whether the nullity of the provision should result in full disgorgement by the lenders of all interest paid by the borrowers since the agreement was signed, or only the difference between IRPH and EURIBOR rate, the invoice for the banks could be very different. 

If I am a consumer with a Spanish IRPH mortgage loan, how will it affect me the CJUE court decision? 

Consumer organizations estimate that there are about one million people in Spain with mortgages subject to IRPH, and that they could aspire to recover EUR 25,000 on average, in case of a ruling favorable to their interests. 

Once the CJEU announces its decision, we will be very pleased to help you get your money back. You do not hesitate to contact us for an evaluation of your case.

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