60,000 may get Spanish property refunds

More than 60,000 Irish investors who lost millions in deposits paid on unbuilt Spanish property may get all or most of their money back, following rulings by Spain’s supreme court and the European Court of Justice.

The Madrid ruling compels Spanish banks to pay back deposits lodged with them, plus interest, while the ECJ has declared unlawful the practice by some banks of enforcing a “floor clause” on variable rate mortgages, resulting in customers paying a minimum, higher rate.

Spanish banks have begun to settle cases with Irish clients, according to Pauline McDonagh, a retired detective garda who is chasing deposits on behalf of investors.