Lost a deposit when a Spanish property developer went bust? Help may be at hand

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A COMPANY set up to act for those who have lost money due to Spanish construction company liquidation expects to recover millions of euros for clients.

Spanish Legal Reclaims has used a number of highly experienced lawyers and financial experts to study the effects of a law which gives those who have lost money when making deposits on properties a possibility to recover their losses.

During the boom years, many expatriates from all over Europe as well as Spanish nationals flocked to put down deposits on properties before they were built, anxious to ensure that they would own a brand new apartment or house.

When the depression hit, one of the biggest areas of loss was in the property construction business and many companies all across Spain went under without completing the work and leaving individuals out of pocket from any amounts from €20,000 to €200,000 or even more.

When this happened, many of the people affected took legal action against property developers. Most of them won the court cases but, as developers had no money left the claimants received nothing except lawyer’s fees.

Most were convinced that these – in many cases devastating – losses were final and there was no chance of ever recovering any of the money involved, but the Spanish Supreme Court which can work slowly, recognised the problem and a relatively recent ruling has opened the door to the possibility of obtaining refunds from the banks involved which do have the funds to pay claimants.

It has been decided that if a bank accepted a deposit in respect of a new build property, they had a responsibility to protect those funds by way of bank guarantees, separate insurance policies or placing the funds in escrow accounts.

If the bank did this, then money would be safe but if they didn’t -as happened in most cases -then they can be sued for a refund of that money.

This is where Spanish Legal Reclaims comes in as they are prepared to review each case on its merits and if there appears to be a good chance of recovering funds, they will take on the case on a no win no fee basis.

Their legal experts and financial advisers will have to undertake a great deal of work to establish liability, especially as many as 60 per cent of all who lost money paid their deposits to lawyers rather than directly to the banks.

This company however has established an almost fool proof method of tracing the funds- even if deposits were made more than 10 years ago – and actually establishing which bank was involved in the transaction.

So far, acting for a number of people from different countries, the company – which has experts fluent in most languages – has already won several cases in court which are now awaiting appeal from the banks.

As the legal system in Spain is slow, they can’t show large numbers of cash refunds although they have had a small number when the banks overlooked making an appeal but they are confident that in the majority of cases, a first decision by a court will be upheld on appeal.

They must be confident as all of this work has been done without any charge to customers!
Banks are rich and they generally employ the best lawyers but if the law is in favour of the victim and those acting for that victim know what they are doing, the likelihood of success is great.

Spanish Legal Reclaims will be happy to discuss your claim and to advise you on their charges in the event that their claim on your behalf is successful.

Anyone who has still not taken action to try to recover lost funds of this type would be well advised to visit www.spanishlegalreclaims.com or call them from the UK on 0845 680 3849 or from Spain 936 804 563.

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