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New hope for thousands who have lost deposits on spanish properties
A recent breakthrough court judgement on non guaranteed deposits held by banks for failed Spanish property developers has given new hope to thousands of people who may have thought their money was lost forever.
The Court has ordered BANCO POPULAR to pay the full principal plus accrued interest to a client who transferred money to BANCO POPULAR and never received a bank guarantee.
Previously, Spanish Law 57/68 protected bank guaranteed investors who bought a property in Spain in the event that the property was never completed. Now, this new judgment goes further, giving BANCO POPULAR clients with no bank guarantee the chance to recover the investment they made in the failed completion in HUMA MEDITERRANEO S.L.
The judgment says: “the bank can not be exempted from the responsibility of payment back to the creditors in the event of the builder failing. Payments should be refunded if the funds were transferred to a bank account and it was an agreement between the bank and the builder to guarantee the money invested, under law 57/68, even if a bank guarantee was never issued “
On the original purchase contract that the client signed with HUMA MEDITERRANEO S.L , it was stipulated that the funds would be guaranteed (even if they were not). A policy was signed by BANCO POPULAR and HUMA MEDITERRANO S.L in order to guarantee the transferred money to the builder.
BANCO POPULAR should have guaranteed the full amount transferred by every client to its bank accounts. The judge stated that: “BANCO POPULAR was negligent in not providing a bank guarantee in this case”.
This new judgment has set a precedent and brings hope to those creditors who never received a bank guarantee for the money they transferred and where the builder failed to complete.
For more information on this judgement go to http://www.ah-
Pilar Alonso Lawyer