Recent Spanish Court Resolutions Declare Multi-Currency Clauses Null: What You Need to Know

The nullity of the multi-currency clause has been a recurring issue in Spanish courts in recent years. This clause is included in mortgage contracts and allows the customer to choose a currency other than the euro for the payment of their loan installments. However, its complexity and the high risk it entails for the customer have led many affected parties to claim its nullity before the courts.

In this article, we will focus on the most recent resolutions issued by the Provincial Court of Pontevedra and the Supreme Court regarding the nullity of the multi-currency clause, without emphasizing the lack of transparency that has already been discussed on numerous occasions.

Starting with the resolutions of the Provincial Court of Pontevedra, we can highlight Judgment No. 21/2021, of January 25, which declares the nullity of a multi-currency clause considering that the customer was not adequately informed about the risks assumed when contracting this type of loan. Additionally, it is noted that the fact that the customer obtained an initial economic advantage does not justify the inclusion of a clause that may be detrimental in the future.

Another interesting resolution of the Provincial Court of Pontevedra is Judgment No. 243/2021, of May 21, which declares the nullity of the multi-currency clause due to a lack of transparency in the information provided to the customer. Specifically, it is noted that the information provided by the bank was insufficient for the customer to understand the risks assumed when contracting the loan.

Regarding the resolutions of the Supreme Court, it is worth mentioning Judgment No. 148/2020, of March 10, which declares the nullity of a multi-currency clause due to a lack of transparency. In this judgment, the Supreme Court considers that the bank should have informed the customer about the possible fluctuations of the chosen currency, as well as about the risks of currency exchange.

Another relevant judgment of the Supreme Court in this area is Judgment No. 482/2020, of September 14, which declares the nullity of the multi-currency clause due to a lack of transparency in the information provided to the customer. On this occasion, the Supreme Court notes that the customer was not informed about the risk of currency exchange and possible fluctuations in the exchange rate.

Finally, we can mention Judgment No. 343/2021, of June 10, in which the Supreme Court declares the nullity of a multi-currency clause due to a lack of transparency in the information provided to the customer. In this case, the Supreme Court considers that the bank did not adequately inform the customer about the risks assumed when contracting this type of loan.

In conclusion, the nullity of the multi-currency clause has been declared by several Spanish courts due to a lack of transparency in the information provided to the customer about the risks involved. These resolutions serve as a warning to banks and financial institutions to provide clear and comprehensive information to their customers before contracting multi-currency loans.