New Court success as multi-currency mortgage overturned. Declared null and void. Bank forced return the overpaid money.

New Court Success. Nullity of a multi-currency mortgage in Japanese Yen

IN today’s article we want to discuss a new judicial success for our law firm whereby nullification of a multi-currency mortgage in Japanese Yen has been obtained from the competent court.

This was in to relation to a mortgage loan, sold by Banco Popular, (now Banco Santander) to our clients.

The case as argued

The clients of our law firm worked for an airline.

It is known that Banco Popular offered these multi-currency loans, mainly in Swiss francs and Japanese yen and recommended this as a suitable product in order to reduce interest for their clients.

We established that the bank carried out customer campaigns among pilots, air traffic controllers, SEPLA affiliates, and, in general, employees of airlines.

The bank did not however inform them about the great risks of this type of product as the fluctuation of foreign currency can mean:

.- That customers owe more than the original loan despite years of paying towards the mortgage if we take into account the equivalent in euros of the outstanding amount.

.- That the monthly instalments of the loans, in euros can constantly increase.

The decision of the Special Court number 25 of Valencia.

The special court of Valencia, has agreed with our claim and this court decision could be checked in this link.

Consequently, the clause for expenses, delayed interest, etc. has been declared void and also, the multi-currency clause (foreign currency) has been cancelled.

The reasons are, as detailed by our law firm in our legal claim:

.-Multi-currency mortgage loans, denominated in foreign currency, are complex and they are not subject to the MIFID regulations.

.-The bank did NOT offer sufficient information on the product mechanism.

.- The bank did NOT offer enough information about the risks regarding the fluctuation of the equivalent in euros of the outstanding capital and the monthly instalments.

Consequences for our client.

The ruling declared null and void the multi-currency clauses that refer to foreign currencies. It forces the bank to recalculate the mortgage loan into euros, recalculating the monthly instalments.

Thus, the bank must return to our client, the money overpaid, plus interest.

In addition, the court told the bank to pay the court costs. Therefore, the bank must compensate our client, for the lawyer and the procurator fees.


If you are affected by a mortgage (loan) or bank product with abusive clauses including expense, floor or multi-currency clauses and if you want to request the cancellation or nullification of a multi-currency mortgage in Japanese Yen, in Swiss Francs, etc. do contact us for advice on banking law.

You can view the services we offer related to legal claims or you can stay informed through our Facebook page.

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

Carlos Baos (Lawyer)

White & Baos

Tel: +34 966 426 185


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