Bank Found Guilty Of Failing To Duly Inform Client

28 July 2009

The Jaen Provincial Court ordered a bank to refund client amounts collected in a financial transaction due to their failure to properly inform.

The client filed a claim for nullity of a contract with a banking entity which included various interest rate swaps based on error of consent since the individual in charge of managing the product had not duly informed him of the details of same, which furthermore did not meet his needs.

The Court considered that the banking entity had violated, amongst others, the General Consumer and User Protection Law (26/1984) and sentenced them to refund all amounts received by virtue of the agreement, as well as accrued interests and expenses, and expressly mentioned the necessity of providing clients with precise, correct and sufficient information, as they must be made aware of the product risks beforehand.

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