The window to reclaim costs tied to mortgage loan formalization has been extended to April 14, 2024, granting borrowers extra time to pursue refunds. This extension is linked to developments in a banking application process and the way it is being administered by authorities.
The extension stems from a 2015 ruling by the Organization for Consumer Affairs, which argued that banks should not bear the full burden of all costs associated with mortgage formalization on customers. This legal action set the stage for subsequent decisions and adjustments that affect how refunds are calculated and claimed.
Initially, the deadline to submit claims was January 2023. It was pushed forward due to the suspension of procedural deadlines during the state of alarm declared in 2020 in response to the COVID-19 pandemic. The regulatory framework ultimately allows a five-year period for judicial requests in these cases, with an additional 82 calendar days added for the suspension period. Taken together, borrowers facing these costs can seek refunds for payments made up to mid-April 2024.
However, the extension applies only to affected mortgages that were originated before June 16, 2019, the date when the new real estate loan law took effect. The scope of costs considered includes all property registration fees that may be charged, as well as administration and valuation fees, and up to half of notary fees, according to information provided by the Organization for Consumer Affairs. Such details are noted as part of the official guidance surrounding the refunds.
With this extension, consumers now have a wider window to pursue compensation for excessive costs incurred during the formalization of mortgage loans. Authorities emphasize that the change provides greater access to remedies for those who bear these charges, ensuring a clearer path to redress for eligible borrowers. The extended period reflects ongoing policy adjustments aimed at balancing accountability between lenders and borrowers in mortgage dealings.