The practical application of the early termination clause. The STS of 11 September 2019. Journey’s end

Abstract

Legal practice shows that the main cause of mortgage foreclosures is the exercise of the early termination clause. The importance of this clause and the costly consequences for the consumer required uniform interpretation and application that would respect the principle of legal certainty not only for legal operators but also for consumers and users. Reality is quite different. If the legal application of the early termination clause has been characterized by anything, it has been by its heterogeneity, which has created confusion and insecurity among those who have had recourse to the law. This article analyses the chronology of the legal application of this stipulation and its lack of uniformity, a problem that should be solved by the decisions of the ECJ of 26 March 2019 and the STS of 11 September. These decisions should bring legal uncertainty to an end and reopen proceedings in about 18,000 mortgage foreclosures, which affect thousands of members of the general public and their families.