13 Jul A new perspective for the IRPH index

Apart from the floor clauses, mortgage formalization expenses and preference shares, another of the banking products that has generated the most litigation in recent years are mortgage loans referenced not to Euribor, but to another index called IRPH.

The IPRH index, as we say, has been the subject of controversy since its configuration – it is an index that is elaborated from data only of spanish entities, which are few, with the consequent possibility of manipulation by the same ones – and their incorporation to the loans would have been made without the due information of the consequences that could have.

Over the last few months, more and more Provincial Court have been admitting the nullity of the IRPH index and condemned the entities to return to the affected all interest paid during the life of the loan. For example, the courts of Álava – the leader – Vizcaya, Navarra, Salamanca, or more recently Madrid.

On the contrary, other Provincial Courts like Barcelona or Zaragoza have closed the step to any possible reclamation given the important power that some entities have in the community. 

For some time now, the Supreme Court has decided to resolve several issues on this matter, precisely because of the diversity of opinions of our Provincial Hearings and the High Court has stated that these procedures on the IRPH index will be processed in an accelerated manner and with urgency given its social relevance.

Therefore, given the imminent outcome of the final judgment, we believe that a new horizon can be opened to ensure that the entities return the interest paid over as a result of the application of the IRPH index. 

Within a few months, even weeks, we will be in a position to know if the inclusion of the IRPH index in the loans is subject to some type of control, and if so, of what type, if the double control as in the floor clauses, or if only could control its incorporation, etc. In short, it would give us many clues to focus future claims and alleviate the situation of those who have a loan referenced to the IRPH with large returns.

That is why, from Navarro Llima Abogados, aware of the ins and outs of these claims, we encourage anyone in this situation to seek legal advice in the coming weeks because they could find a lot more favorable land than a few months ago.

Guillermo Martinez

Litigation Department