Spain's Supreme Court Orders Kutxabank to Repay Reverse‑Mortgage Interest

The Spanish Supreme Court (Tribunal Supremo) issued a landmark ruling overturning a 6.5% fixed‑interest clause in a reverse‑mortgage contract. The court ordered Kutxabank to return roughly €80,000 in accrued interest and legal costs to a family from Valladolid, citing EU case law that requires full nullification of abusive clauses. Lawyer Arantxa Jaén Pedrero, who pursued the case for seven years, highlighted the decision as a major step in protecting consumers from unfair banking terms.

In a related Supreme Court judgment from July 2026, the court also nullified a mortgage‑expense clause and clarified that the prescription period for restitution claims begins on the date the nullity sentence becomes final. The ruling invoked Directive 93/13/EEC and EU Court of Justice precedent, confirming that costs fall on the lender when a clause is declared abusive. Both decisions reinforce stricter scrutiny of mortgage contracts across Spain.