Definition of Floor Clause

The clause I usually It is a condition imposed by some banks and that especially affects the mortgage payment quota. This clause consists in the fact that clients cannot benefit from falls in the Euribor, since said condition establishes a minimum interest rate to pay and in this way the reduction of the Euribor does not translate into a decrease in the monthly fee of the mortgage.

The floor clause does not appear as such in the signed mortgage contracts, but receives a less clear name, specifically "limits to the app variable interest "or" limit of variability ", a type of explanation that probably will not be understood by whoever takes out a mortgage. Consequently, the floor clause can be considered a "trick", since the use of technical euphemisms hides the true intention of the clause, that is, that the client of a mortgage does not benefit from a foreseeable reduction in Euribor.

An abusive practice

The floor clause is considered an irregular and abusive practice by banks. It is understood that it is a way of confusing the client, making him sign something that he would surely not sign if he really understood the content of the contract. This circumstance has caused many bank users affected by this clause to join forces to take banks to court and they force them to correct this.

abuse. As is logical, this matter is controversial, since strictly speaking the floor clause is legal, but in some cases the courts have ruled that this is not the case and have agreed with those affected by they.

Tips to avoid possible bank abuse

First of all, it is necessary to read carefully everything that is related to the conditions that affect our money, especially the so-called "small print".

What rule In general, banking terminology is complex and very technique, so it is advisable to ask everything that we do not understand.

It is useful to compare the conditions of different banks and not think that they are all more or less the same, since the small differences may not be so small and end up affecting our economy.

If we consider that our Bank has acted irregularly, we can consult an organization dedicated to advising users banking, since these entities know well the banking network and how to defend themselves against possible abuses.

Photos: iStock - graletta / Onypix

Topics in Floor Clause