Wed. Apr 1st, 2020

The Rothschild bank, convicted of placing a high-risk loan to British retirees in Spain | Economy


A judge from Malaga has just issued a new sentence that condemns the Rothschild banking of London for the financial artifacts he perpetrated in Spain against a British marriage based on the Costa del Sol. Barry William and his wife Marion Joyce, who are now around 70, have been about to lose their home in Benalmadena, in which They invested almost all their savings, after falling into the networks of a sophisticated financial product devised by Rothschild for retired compatriots who had a home in Spain paid and without a mortgage. The harmfulness of this product was even debated in the British Parliament after the complaints of the affected Spanish to feel cheated and see that the bank could take their homes away.

The marriage will not even have to return the 15,100 euros that the bank gave him in cash as a hook in exchange for mortgaging his house and investing the money with deception

This is the first sentence that directly condemns N.M. Rothschild & Sons Limited, a subsidiary of the Rothschild bank, for what was once called Credit Select Series Four, a complex financial product framed in the so-called Sitirs (Spanish Investment Transfer and Income Mobilization Plan). But there are other judicial decisions on the way, since those affected exceed one hundred and there are courts on the Costa del Sol, Levante and Baleares with lawsuits underway related to this same operation.

The judgment of the Court of First Instance 3 of Torremolinos annuls the entire operation. The marriage will not even have to return the 15,100 euros that the bank gave in cash as a hook in exchange for mortgaging their home and making them sign a loan that made them high-risk investors without them knowing.

Pablo Espejo, lawyer.


Pablo Espejo, lawyer.

Coinciding with the arrival of the euro, which weakened the pound with which so far many middle and lower class Britons had acquired houses on the Spanish coast to spend their retirement, the Rothschild bank (through subsidiaries colluded with friendly societies and using intermediaries) advertised a product that apparently was difficult to refuse. The only condition is that the house was fully paid, without any charge. The bank assessed the home and immediately delivered between 5% and 10% of the appraisal to the owners, in cash. This money that, then, was the year 2006, was a candy after the increase in living standards in Spain due to the rise of the euro to the detriment of the pound. Spain was no longer so cheap. And nobody got bad fresh money.

Product advertising offered a safe investment with countless advantages. For example, that this investment would serve to substantially reduce the feared inheritance tax then prevailing in Spain. Them they sold that, with a view to the inheritance of their children, a loan with a mortgage guarantee for investments was the best brake against the aforementioned tax. Loans granted in this way reached an average of 300,000 euros. There are more than a hundred affected. But I had a trick.

The sentence dismantles the aggressive advertising claims used. Barry Wiliam and Marion Joyce were wrapped in a maze that has been about to ruin them. They had to sign a loan with the bank itself of 227,000, which was the appraisal price of the house. The money from that loan was then invested by the bank, in collusion with other friendly societies, abroad. In securities that supposedly had little risk. They were told that the investment would be for life insurance through the company Aspecta Assurance Internacional Luxembourg, SA, also sentenced in this sentence.

In 2016, ten years later, when the deadline for repayment of the loan was met, not only had the investment not grown, but NM Rothschild began claiming this marriage 302,132, 182 euros under the threat of executing the mortgage

When they were shown the loan contract papers, the only option, if they wanted to receive 15,100 euros on the fly, was to sign it without objecting to its content. As soon as the credit was signed, the money, which they did not even touch, because the bank was in charge of investing it, began to decrease. The attorneys’ commissions imposed by the bank itself, notaries, registries and other efforts ate the first year 55,443 euros of the 227,000 signed as a loan. And in 2016, ten years later, when the deadline for repayment of the loan was met, not only had the investment not grown, but NM Rothschild began to claim 302,132,182 euros from this marriage. And if he did not pay, the mortgage was executed and he stayed with the house.

The investments were dire, unlike what they were promised. The bank has held before the judge that it is not her but the other firms involved in the operation responsible for the fiasco. The judge understands that it was she who induced the operations and that it should not be shielded in third parties.

Thanks to this sentence, Barry Wiliam and Marion Joyce will keep their house, since the judge has annulled the entire operation. The marriage will also not have to return the 15,100 euros that it received in cash, when the judge understands the entity must respond for the vices that the loan hid and the deceptive advertising used, which ensured that the investments would move away “from unexpected risks” and I would opt for conservative investments. It was not so.

Blunt sentence

The judge explains in the sentence: “The proven facts determine without any doubt that the product (…) does not constitute a simple loan with mortgage guarantee but a complex legal business, and the successive contracting of different products that make up a single one is really underway. high-risk financial product, hiding from the plaintiffs (…) the true nature of it, since they were never informed of the dangers inherent in their subscription, being offered in the form of a safe, profitable product and whose cause was to reduce the amount of inheritance tax in Spain ”.

“To my clients, they were promised a conservative product, without assuming unnecessary risks, whose yields would allow them to face the cost of repayment of the loan, as well as to obtain extra income. None of that corresponded to reality, ”says Pablo Espejo, the lawyer of the Malaga office Iura Law Firm who took care of this matter 14 years ago.

The judge orders to make invalid the mortgage burden that weighs on the housing of this marriage and concludes that the entity must return all the money that the affected ones have given to it to date, that they have been about to lose their house since they could not face the loan of money that they didn’t even see.

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