Brussels takes Spain to the CJEU for not applying EU mortgage law For failing to incorporate European legislation into its legislation

The European Commission (EC) today decided to bring Spain, as well as Croatia, Cyprus and Portugal, before the Court of Justice of the European Union (CJEU) for failing to incorporate "European" mortgage legislation into their legislation.

The countries had until March 21, 2016 to transpose the law, said in a statement the community executive, who had already formally asked these countries in 2015 to implement the directive.
The aim of the directive is "to create a mortgage-credit market across the Union with a high level of consumer protection," the Commission said.

According to the Executive, the non-application of European law in the Member States means that the consumers of those countries do not have the protection granted when they subscribe their mortgage loans or when they experience difficulties to reimburse them.

It deprives consumers of advantages
Without the directive, adopted on 4 February 2014, credit intermediaries also can not have a passport for their business activities, which "deprives consumers in Croatia, Cyprus, Portugal and Spain of potentially more advantageous credit offers Of lenders from other Member States, "Brussels said.

The Executive said that this situation "hinders competition, limits the choice and leads to higher prices." The standard introduces the European Standardized Information Sheet (FEIN), which seeks to enable borrowers to better understand the risks inherent in their mortgage contract, measures to assess the creditworthiness of mortgage applicants, and principles for authorizing and registering credit intermediaries. credit.

It also has provisions for early repayment, foreign currency loans, tied sales practices, financial education, property valuation, delays and foreclosure.

In addition to 2015, the Commission already asked Spain in May and November last year to transpose the directive into national legislation.