Abuses by banks in Spain. Complex investments, structured bonds, autocancelables, etc.

Banks abuses in Spain.

Banks abuses in Spain. have been and continue to be scandalous.

With the numerous court decisions that continue to be granted.

One could almost believe that it is general practice committed by all Spanish banks, or almost all of them.


 The banks’ abuses include the sale of preference shares,  interest swaps (SWAP / CLIP, etc.), mortgage floor rate clauses, as well as inadequate investments.

 In today’s article we want to talk briefly about those judgments condemning banks to repay investments made by their customers, due to inadequate advice and insufficient information given to the customer / consumer, by their bank.



Most of the court rulings granted in favor of consumers are based on the breach of the bank’s duty to give adequate information to customers and consumers.

This information is both vital and essential when considering the purchase of complex financial products.

Products such as structured bonds, derivatives, and  products of high technical complexity, these products also tend to carry a high risk.

 Many of the consulted court orders insist that Spanish Banks are negligent and fail to explain clearly, and prior to the signing of these contracts: the inherent risks, the commissions to be charged ( normally quite high), and how to recover the investment, etc.

 Therefore, the consent given by the consumer is considered “null”, that is to say, that although the client and consumer signs and voluntarily accepts the purchase of the fund, or the investment, that consent and agreement is flawed because the consumer does not have enough information to really know what they are contracting.

It is well known that banks routinely violate their information obligations and the regulations governing advice to be given, and they often ask clients to sign contracts without giving them the time to read them carefully.


 There are numerous court judgments against Spanish banks that can be easily found online, we highlight the judgments against:

.- Barclays Bank  for the Royal Bank of Scotland Bonds

.- BBVA and Banco Santander,

.-Structured Bonds BNP SAN POP and Caylon Bonds;

.-the court decision against Banco Espiritu Santo (BES) in relation to bonds issued by Lehman Brothers as examples.

 We must not forget the special care and attention that banks should have when selling these complex products to a retail client, i.e. an individual consumer  that is not an expert in complex investments.  The customer’s individual risk profile, whether they have a high, medium or low risk profile, is also relevant in these cases.

 Therefore, if you or someone you know has a problem with your bank: an investment made through them, a mortgage floor clause, or preference shares, we can help.

If you know about Banks abuses in Spain, Contact Us.

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The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.

Carlos Baos (Lawyer)

Spanish Law firm solicitor attorney barrister.

Alicante, Denia, Costa Blanca Marina Alta

White & Baos 2015– All rights reserved

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