There Cassation curbs the enthusiasm of those who, having stipulated a Euribor mortgage, was hoping for an automatic refund. It was the same Supreme Court that decreed last February nullity of the interests calculated with theEuriborin light of sign implemented among some large banks.
Mortgages at Euribor rate, new ruling from the Supreme Court
For the supreme judges, anyone who aims to declare the nullity of the interest on a Euribor mortgage must first supply proof “not only of the existence of an agreement or practice aimed at altering the parameter in question, but also of the fact that this agreement or practice has achieved its objective and, therefore, that parameter has actually been ‘altered’, in concrete terms , due to the illicit manipulation suffered and, consequently, is not usable in the relationships between the parties, not corresponding to the object of the contract, as determined according to the will of the parties”. This is how it is written in the sentence 12007 of 3 May 2024. And not only that: if the credit institution he is not involved or anyway awarethen the clause is not null.
The case of the manipulated Euribor
The case of Euribor mortgages manipulated exploded with the decision from the European Commission of 4 December 2013 which highlighted the actual existence of a manipulative activity carried out by 8 among the main ones banks European countries for determining the Euribor rate. With the sentence no. 34889 of 13 December 2023 the Ermellini have established the right to reimbursement of the interest paid on Euribor rate mortgages which have been manipulated in the period between 2005 and 2008. Now the Supreme Court adds some new elements.
Recently, some courts have denied refunds to citizens who had taken out mortgages with manipulated Euribor.
For the citizen to be able to exercise his rights, an illicit manipulation by the bank on the Euribor mortgage must actually have occurred in a conscious manner and this manipulation must have had concrete effects on the interests of the mortgage such as to constitute a violation of the contract. But the Supreme Court leaves the door open to the declaration of partial nullity in case it is possible to demonstrate that the alteration of the parameter has actually affected the specific contractual relationship. In this case, if it is not possible to reconstruct the “genuine” value of the rate, the consequences will be assessed according to the general principles of the law.
It is therefore mandatory to verify whether the manipulative practices have not just been attempted; whether the manipulation of rates had any effects, and for how long; and, finally, what are the consequences of the possible partial nullity of the clauses on the contract as a whole.
The Supreme Court therefore excludes the wiping out and requires, in the event of an appeal, to check the individual contract.
What is Euribor and how is it calculated
Euribor stands for Euro Interbank Offered Rate. This is the average interest rate applied to interbank money exchanges implemented by the main credit institutions in the Euro area. It is calculated daily in different maturities (1 week, 1 month, 3 months, 6 months, 12 months) and serves as a reference for setting interest rates on various financial products, such as loans, mortgages and derivatives. Euribor is a fundamental part of the European financial markets and directly influences the costs of borrowing for businesses and consumers. Any manipulation of the Euribor therefore has a cascading effect on a series of financial products.
