MORE AND MORE JUDGMENTS CANCEL THE SUBORDINATED OBLIGATION CONTRACTS SIGNED BY CONSUMERS BY BANKING INSTITUTIONS

There is an important difference between preferred and subordinate. Although both are money deposits that the bank is obliged to repay in a term, with its interests, the preferred ones, in addition to being in a higher rank against ordinary creditors in case the bank insolvency, they do not have a maturity term. This data has been essential when judging its validity, since it makes it a highly complex coated product, in which banks should have used extreme caution when transmitting the information in said contract to consumers. However, the subordinated obligations have a specific maturity, and their structure is more like a fixed-term deposit, except for certain clauses that make the accrual of interest depend on the economic results of the bank in each year. This lower complexity means that there have been fewer cases of prosecution regarding the validity of said contracts, compared to preferred ones. However, more and more people are seeking legal protection, and a considerable volume of judgments are being produced that annul subordinate obligations based on the banks’ failure to supply truthful information to the non-professional client.