2023-10-27 01:36:31
Magdalena Rico Palao, lawyer specializing in banking law, platform www.eliminarhipotecamultidivisa.es
Do you want to know how a multi-currency calculator works? What is a multi-currency mortgage? How can I calculate the economic damage of my multi-currency mortgage? The consumer law expert Magdalena Rico Palao tells us how this tool works.
What should you know about multi-currency mortgage simulators or calculators?
They are tools that can calculate the savings in installments after the cancellation of the mortgage loan, for example in yen or Swiss francs, and the capital differences with the chosen currencies and the euro, thereby calculating the property damage that you have had due to this complex product and high-risk.
What is a multicurrency calculator?
It consists of spreadsheets, with multiple applications, designed for the work of advising our clients.
You can calculate the economic damage of your multi-currency mortgage here by entering your data in the following form:
What are the technical characteristics of the multicurrency calculator we use?
Our settlement tool offers calculation possibilities for mortgages in euros and their comparison with the multi-currency mortgage you have.
The tool allows you to visualize the damages due to changes with deficiencies, the alterations due to partial amortizations or other novations of term or capital.
Finally, once all the calculations have been carried out, the tool issues a report with the amounts to be returned.
What is the harm of the multi-currency mortgage?
When a client affected by a multi-currency mortgage asks us for a report on the damages of the multi-currency mortgage, one of their main doubts is knowing the economic damage they have suffered, that is, what money the bank has to return if they win the lawsuit for multicurrency mortgage and how the capital of the new mortgage remains.
Multicurrency calculator: how to calculate the economic damage of a multicurrency mortgage?
To estimate the calculation of the economic damage of a multi-currency mortgage, two amortization tables must be made:
The amount that the indebted client has actually paid in a currency (for this article we are going to assume that the debt was in Japanese yen -JPY-), in its equivalent value in euros -EUR-.
To do this, we need the mortgage deed and, where appropriate, the novations, as well as an amortization table from the beginning.
The simulated amortization table that would have occurred if the client had requested the mortgage in euros.
By comparing both amortization tables we can obtain the monthly amounts that the client has been paying more, in addition to calculating the outstanding debt that the client would have if the multi-currency clause had not existed.
In addition to these amounts, the bank would have to return the exchange rate commissions applied each month and the corresponding legal interest would also accrue.
Multicurrency calculator: what is the calculation of the economic damage of a multicurrency mortgage?
The economic damage caused by the declaration of partial nullity of the multi-currency clause involves calculating the following magnitudes:
The difference between the installments actually paid in € (calculated by the bank at any time based on the EUR/JPY exchange rate (understood as yen for foreign currencies) applied to installments in Japanese yen) and the monthly payments that the customer would have paid. having contracted the mortgage in euros, with the agreed interest rate. It is necessary to calculate the amortization schedule that would have occurred if the mortgage had been contracted in euros. The monthly differences between what the client actually paid (equivalent in euros of the monthly payments in yen, at the exchange rate that the bank has taken each month) and what they would have paid if they had taken out the mortgage in euros. Regarding the outstanding debt that the bank claims, it is calculated applied to the outstanding debt that the client has in Japanese yen AND JPY at the EUR/JPY exchange rate in force at all times.
The difference between the outstanding debt claimed by the financial institution and what there would be if the mortgage had been contracted in euros is the economic loss resulting from the outstanding debt.
Exchange rate commissions, which the bank applies each month.
What are the risks of the multicurrency mortgage?
Exchange rate variations
The appreciation or depreciation that the currency associated with the loan may suffer against the euro.
If the currency is revalued against the euro, both the installments and the outstanding debt increase in their equivalent value in euros, while if the euro is trading upwards, that is, if the currency falls, less debt for the consumer.
Changes in the interest rates of the contracted currency (Libor). The quotes determined by banking entities for the purchase and sale of foreign currencies, different from those published by the European Central Bank. The commissions that banking entities apply for carrying out currency exchange.
Should I file a lawsuit against the multi-currency clause now or should I wait?
The rulings by both the CJEU (Court of Justice of the European Union) and the TS (Supreme Court) have considered these clauses to be effectively abusive due to their lack of transparency, so there is a solid network to consider the viability of this class. of actions.
Thus, as an example:
Sentence of the Supreme Court of 11/15/2017. Id Cents: 28079119912017100032.
This statement, as has been proven in the process, did not correspond to reality since Barclays did not provide the plaintiffs with any written information prior to signing the loan and the Barclays salesperson who assisted them lacked adequate training on the product that would allow you to inform about its nature and risks.
41.- We have already affirmed on previous occasions the ineffectiveness of predisposed mentions that consist of declarations not of will but of knowledge or fixation as true of certain facts, which are revealed as formulas predisposed by the professional, devoid of real content as they result contradicted by the facts. This court has declared this in numerous rulings, from 244/2013, of April 18, to 335/2017, of May 25, and all those that have intervened between one and the other.
Sentence of the Supreme Court of 31/10/2018. Id Cents: 28079110012018100590.
The bank’s arguments are not correct. The fact that the plaintiffs were the ones who went to the bank to take out a mortgage loan in foreign currency or that other banks also offered this type of loan, and the plaintiffs had previously gone to another bank to be interested in this product, does not eliminate the nature of the general conditions of the contracting the clauses that make up the contractual regulations, unless the bank proves that they were the result of the negotiation with the client, which in this case has not happened, and on the other hand would not be credible in view of the complexity of ‘multi-currency clauses’ and that the borrowers were simple consumers, without bargaining power.
Sentence of the Supreme Court of 26/11/2018. Id Cents: 28079110012018100650.
3.- Nor can the third reason be upheld because the alleged violation of the specific regulations on transparency of the financial conditions of mortgage loans, by itself, cannot justify the appeal and, furthermore, at the time of execution of the disputed contract, the Order of May 5, 1994, on transparency of the financial conditions of mortgage loans, which is cited as infringed in the appeal, limited its scope of application to loans of an amount lower than that of the disputed loan . The truth is that the modification of art. 48 of Law 26/1988, of July 29, on Discipline and Intervention of Credit Institutions, which established that information related to the transparency of mortgage credits or loans must be provided regardless of the amount of the loans. The same, provided that the mortgage falls on a home, was approved by Law 41/2007, of December 7, after the conclusion of the contract.
Sentence of the Supreme Court of 14/03/2019. Id Cents: 28079110012019100146
5.- This challenge cannot be upheld since, as we declared in rulings 716/2014, of December 15, 323/2015, of June 30, and 608/2017, of November 15, in relation to the non-compliance with the rules that impose information duties with respect to investment products and services, the Law on discipline and intervention of credit institutions and the Order of May 5, 1994 do not provide for the nullity of banking contracts in which the bank has failed to comply with its information obligations, but rather administrative sanctions. In ruling 599/2018, of October 31, we have reiterated this in a matter related to a multi-currency loan.
6.- Failure to comply with the information duties required of banking entities is relevant, as will be seen later, when carrying out transparency control of non-negotiated clauses in contracts entered into with consumers.
Sentence of the Supreme Court of 17/07/2019. Id Cents: 28079110012019100146.
2.- This court, in its ruling 608/2017, of November 15, assumed the doctrine established in the aforementioned STJUE and modified the previous one of its ruling 323/2015, of June 30. We have also confirmed this in rulings 599/2018, of October 31, and 158/2019, of March 14.
We refer to the arguments expressed in the aforementioned rulings, as they are fully applicable to the case that is the subject of this appeal.
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