Eviction “code of practice” needed

Luis de Guindos
Economy Minister, Luis de Guindos

Economy Minister, Luis de Guindos has called for a “code of practice” to be drawn up for banks to help struggling home owners to stay in their home and reduce their debt.

Speaking in parliament today, Sr. de Guindos called for an end to the “human tragedy” caused when a family is evicted, effectively making them homeless.

“This situation is a human tragedy,” de Guindos said. “The government is very sensitive to the situation created by the large number of evictions which are affecting a large number of citizens.”

“What the government is going to try to do is protect a segment of the population, which because of the economic crisis and as a consequence of the errors of the past, may find itself in a very difficult situation,” de Guindos added.

The minister called for steps to be taken to allow defaulting home owners to write off their mortgage by handing the property back to the bank, sparing them from accumulating further debt.

The code will not be there as a get-out-of-jail-free card for everyone with debt problems. It will be there to provide help for families that fall under a definition of economic exclusion, which has yet to be defined. Those that will benefit are likely to be families in the lowest income bracket, or with no income, and with no additional assets.

Official figures show that nearly 43,000 evictions were carried out in the first nine months of 2011, just under 5,000 fewer than the total for the previous year, which was 47,800.

Over recent months campaign group PAH has staged a series of protests on the doorsteps of home owners awaiting eviction. In a statement the group said a code of conduct was not enough to protect families or provide assistance for those already evicted.

“We do not need recommendations but legislation that guarantees that citizen’s fundamental rights will be protected,” the statement said. It also went on to say that appealing to the good will of the banks with a “voluntary” code would not work because these are companies whose only reason to exist is to get maximum profit from it’s customers.

Luis de Guindos is a former Lehman Brothers executive, appointed by Mariano Rajoy, so I have to wonder how on earth he managed to get a job as a government minister in a country still suffering from the damage Lehman Brothers caused.

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4 thoughts on “Eviction “code of practice” needed

  1. DQ

    “Luis de Guindos is a former Lehman Brothers executive, appointed by Mariano Rajoy, so I have to wonder how on earth he managed to get a job as a government minister in a country still suffering from the damage Lehman Brothers caused.”

    ““This situation is a human tragedy,” de Guindos said. ” Well DUH! You helped cause that human tragedy!!!

    “cronyism” is the answer to how he got the job!…. and now Rajoy should be suspect in all he does with this cronyism! The real human tragedy is hiring a Lehman Brothers blood-sucker to further tear down the country!

    “The minister called for steps to be taken to allow defaulting home owners to write off their mortgage by handing the property back to the bank, sparing them from accumulating further debt.” WHAT??? So how will that keep these people IN their homes??? This is offensive and ridiculous! That’s no solution!

    How about re-write the loans with little or no interest rate for a period of time, and let these people get back on their feet without fear, and the all-consuming stress of “where are we going to live now??”

    The banks HAVE a cushion of funds already, we know that. Now, let’s help the people!!!

    There are solutions IF the powers that be REALLY want to fix this.

    I’m rooting for the people of Spain!! You will overcome this!

    DQ

  2. Welcome back DQ! I was beginning to worry 😉

    I totally agree with you – how does allowing people to give up their homes help them to stay in their homes? It seems there isn’t really anything being done or suggested that would actually benefit people. It may help the banks to get people out quicker but it wont help any borrowers.

    1. DQ

      Hey now! You’re stuck with me 🙂

      I’m all over this blog, and have alot more folks reading it now too!

      You know you are right — almost ALL of the “help” I’ve ever seen in any country is to benefit the BANKSTERS not the people… and, when the people have had enough, they will rise to the occasion and let the politicians know…

      When you back someone into a corner, they have no other direction to go but right back at you…

      DQ

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