defenseless savers in front of the bank | Economy

Over the past few weeks, we have seen an extraordinary show of strength by financial institutions. Major banks refuse to pay deposits properly despite repeated warnings from the authorities. The fact is that Spanish financial institutions reward the savings of less than half of the savings of European banks. This discrepancy occurs despite the fact that banks in the European Union …

Over the past few weeks, we have seen an extraordinary show of strength by financial institutions. Major banks refuse to pay deposits properly despite repeated warnings from the authorities. The fact is that Spanish financial institutions reward the savings of less than half of the savings of European banks. This disparity occurs despite the fact that banks in the Eurozone share the same currency and the same Central Bank (ECB) which provides financing at the same cost to all entities. An exceptional case closely related to the 13% profit increase in the first quarter.

Deputy Prime Minister and Minister of the Economy, Nadia Calvinho, has asked the National Statistics Council to investigate whether there are “factors” that prevent Spanish banks from reimbursing deposits under the same terms as European banks. The outcome of this investigation is not very encouraging, as the head of the CNMC, Kani Fernandez, has already indicated the lack of tools to control banks’ compliance with competition rules.

It is worrisome that the authorities realize they lack the tools to know bank accounts. The lack of transparency precisely in the calculation of mortgage interest is one of the aspects pointed out in a legal report commissioned by the former government of the Balearic Islands, headed by socialist Francina Armengol, published on June 19. The study deals with the denunciation of omissions or errors in mortgage financial agreements that are crucial to foreclosures.

The author of the report, attorney Veronica Davalos, an expert in European mortgage and rights, confirms that “in many cases, the accounts made by banks on the liquidations they made in cases of mortgage foreclosures are incorrect.” The report notes that the vast majority of credit institutions “apply a unilateral amortization system, not agreed upon in the credit instrument or mortgage loan.” He adds that “the formula agreed upon in the deed is not really a formula. It is just an amalgamation of mathematical symbols that does not allow for the calculation of any amount of the monthly fee. The fact of not being able to know exactly how the mortgage payments were calculated and therefore the principal claimed In foreclosure proceedings the garnishing party is left completely unprotected.”

Dávalos’ study indicates that Bank of Spain claims report In 2016 he described it as “a breach of good faith” to impose an unacceptable payment system. It ends up calling on Spanish courts to submit questions for a preliminary ruling to the Court of Justice of the European Union in light of the possible breach of European regulations. Faced with the defenseless situation of consumers, the Association of Financial Users (Asufin) asked the government that will emerge from the upcoming elections to persevere in the establishment of the Financial Customers Banking Authority, which was held back by electoral progress.

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