Equity Release Mortgage and Unqualified Lenders

Have you been sold an Equity release mortgage by an unqualified lender?

As with any sector in Spain or worldwide, there are sharks in the financial sector in Spain. 

We know of some of the practices of the Spanish high street banks and how ultimately our clients were refunded the excessive charges and clauses they were “bullied” into accepting. 

A British based financial company has just lost their case in The Málaga Appeal Court. They had previously lost their case in a Court of Instance in Fuengirola. Some of the clients have been waiting up to 14 years for a resolution. 

In the detailed and extensive ruling, the Spanish Courts very much favoured the client’s side.  Here are the 3 main arguments sent forward by the court:

1. No company can sell what the judges deemed as a complex financial product in Spain made up of a mortgage loan combined with a speculative investment vehicle. As we know very well in JJC Capital Partners, if you attempt to do this and you are unlicensed, you are breaking the Spanish law. As such all deals are null and void ab initio.

2. A “lender” licenced or not, may not misrepresent material facts pertaining to the associated investment risks. We are not financially qualified to advise our clients and we always ask them to seek independent advice. We help people to avoid not, not evading tax! 

3. If you sell a financial product liek a loan through a network of unqualified financial advisors, then you are breaking the rules. Worse still, by handpicking well-paid lawyers to help “close” the clients, a financial institution will be considered even more in the wrong. 

The high provincial Court said that the particular firm mentioned here attempted to fragment the financial product into a benign mortgage loan, that just happened to have an investment part to it. If the investment devalued, the client lost.

What can JJC Capital Partners do for you?

The ruling has taken years and a lot of money to reach for the clients who were taken advantage of. Any appeal, according to those involved, would be seen as cruel, unnecessary and nothing more than a delay tactic to prevent the inevitable from happening. Ultimately the clients will see the invalidation of the mortgage loans on their properties.

What about clients who were not so lucky to get involved in this case? 

We can help you if you have been sold what you think is an illegal financial service in Spain.

Our advice is that you should always get independent financial advice FIRST, before signing up for any activity such as this.

However, if the ship has sailed and you are now stuck with a terrible reverse mortgage or equity release deal, please don’t hesitate to get a free assessment of your case from JJC Capital Partners.

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