this Provincial Court Zamora A neighbor of Toro decided in favor forcing the banking institution Santander Consumer Finance to refund the interest received for a purchase made on a loan. revolving card this bank.
The woman is an eight-year-old woman who was proposed to her. Wizink card financing the purchase of a device in installments. In this case, The purchase made in 2014 carried 26.82% interest and had already risen to 27.24%. when you open the case.
What is a “revolving” loan?
In this type of card, called a ‘revolving’ or revolving or renewable loan, the credit limit is constantly rebuilt, and because the installment amounts are usually not very high, the debt – and the interest paid – grows over time, whereas the client pays a small capital depreciation rate and a high interest rate. They are usually addressed people with little solvency who cannot access more advantageous loansand the interest charged is generally higher than other types of loans.
case of toresana
In the Toresana case, the State Court Canceling the interest fixing article of the card contract, when taken into account they are “too high” and “disproportionate”.
In the first instance, the Toro Court ruled in favor of the bank, but the Provincial Court partially upheld the appeal filed by Valladolid law firm ‘Don Recuperador’ on behalf of Toresana, Ordering Santander Consumer Finance to refund interest money and pay first-degree costs. The Bank can still appeal this decision to the Supreme Court.
The Provincial Court ruled that the fee interest agreed in the card contract is null and void. Usury LawThis cancels all loan contracts at a “much higher than regular money” interest rate.
According to Supreme Court jurisprudence, the normal interest on money is determined by the market. Therefore, the judges consider the interest collected. Bank of Spain statistics. The regulator calculates the monthly average interest charged in the country for each type of loan, sharing the information it shares with all organizations in the industry. A fee of just over 20% was collected on average in 2014 for consumer loans with revolving cards..
The Toro Court ruled that the difference of six percentage points between this 20% and the interest charged to the eighth age group on this purchase was not large enough to be considered usury.
In its place, The County Court considered that 20% per annum was already a very high interest rate.or the specific circumstances surrounding these revolving credit agreements, for example, the fact that the intended public or credit institutions usually issue them in an agile manner and without checking the customer’s ability to pay. Based on the case law of the Supreme Court, the Provincial Court Interest rates that are three or four percentage points above the average interest rate are considered usury. revolving card transactions.