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Politics

European Court of Justice

Court says Spain's repossession law violates consumer protection law

AP

Madrid

The watershed ruling said Spanish legislation infringes EU law as it does not allow courts to halt eviction orders on the basis of possible unfair terms in mortgage agreements.

  • The ruling will almost certainly lead Spain to make changes to its law. Photo: EFE

    The ruling will almost certainly lead Spain to make changes to its law. Photo: EFE

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The European Court of Justice says harsh repossession laws in Spain that have led to hundreds of thousands of evictions during the country's deep recession violate EU laws on consumer protection.

The watershed ruling Thursday said Spanish legislation infringes EU law as it does not allow courts to halt eviction orders on the basis of possible unfair terms in mortgage agreements.

The ruling will almost certainly lead Spain to make changes to its law and will also be taken into account by judges handling eviction cases.

More than 350,000 Spaniards have received eviction orders since 2008 because they were unable to make mortgage payments.

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