The European Court of Justice has ruled that Spanish banks will need to repay more to reimburse mortgage customers over so-called floor clauses.
Spain's Supreme Court in 2013 banned the use of minimum interest rate clauses in residential mortgage contracts, but the ruling was not retroactive. The ECJ's decision means that banks will have to repay customers for loans subscribed before 2013. The new charges are likely to amount to billions of euros.
A court in Madrid in April already ordered approximately 40 banks, including CaixaBank SA, Banco Popular Español SA, Banco Bilbao Vizcaya Argentaria SA and Banco de Sabadell SA, to refund the extra interest paid on mortgages since the 2013 ruling.