Bank guarantees are meant to protect the money of people who buy off plan or under construction, and are required by law. If the developer goes bust, or breaches contract by, for example, missing the delivery deadline, buyers can claim back their money, with legal interest of around 6%, from the financial institution underwriting the guarantee. Some Spanish banks and insurance companies are breaching consumer protection laws by stalling, or refusing to honour guarantees for off-plan stage payments, reports the Spanish daily ‘El Pais’.