Clifford Chance
The Spanish Supreme Court, sitting in plenary session, confirms that loans linked to an official index cannot be abusive
11 January 2018
The judgment handed down by the Plenary Session of the Supreme Court on 14 December 2017 has reversed the position taken by several Provincial Courts, which had found that loans linked to certain official rates (including as, in this case, the IRPH – the average rate for housing loans granted by financial institutions in Spain-) could be abusive where the client has not been properly informed. The Supreme Court has now established that a clause referring to an official interest rate is not abusive.
