Revolving and credit cards let people finance purchases up to a set limit and pay in installments. They have long attracted scrutiny because of high interest rates. Thousands have complained about companies that sell them, yet many users report being abandoned by law firms that advertise litigation against banks.
From the financial comparator Banqmi, the account of an affected consumer is shared. Fernando (a fictional name) entered into a revolving card agreement and, realizing the installments were unaffordable, reached out to a law firm that advertised on Facebook, promising to sue to recover the interest and fees charged. The message was simple: the process could be easy and free.
This Madrid resident recalls that in initial outreach the lawyers claimed dozens of wins and suggested potential refunds, though they conceded there could be no 100 percent guarantee. They implied that the client might exit if things looked favorable. When Fernando decided to pursue the case with that office and the decision favored him, the firm stopped updating him, changed his attorney several times, and provided little information about progress. Time stretched on without clear updates, leaving him frustrated.
Costs covered and debt payment due within 20 days
Before trial, the firm allegedly promised that, if the court ruled in their favor, they would negotiate a manageable debt repayment plan. This was Fernando’s sole concern: to repay the debt in installments rather than netting a windfall. Yet the surprise came when he was asked to deposit 3,586.07 euros into the court account within 20 days. Unable to pay the amount, he ended up paying roughly 600 euros in fees and 300 euros for legal services, and signed a contract that assigned trial costs to the firm. The claimed costs amounted to 2,508.54 euros.
Fernando explains that he signed the contract without realizing the full financial exposure. This kind of scenario is common in lawsuits against banks. A financial expert from Banqmi, Antonio Gallardo, notes that court costs in such cases are typically borne by the losing bank and should belong to the plaintiff unless the contract specifies otherwise. He also highlights the frequent lack of transparency with clients who do not fully understand the legal costs involved.
As a result of the obligation to settle the 3,586.07 euro debt, Fernando did not pay, leading the bank to pursue the amount through a lawsuit. When this happened, the handling law firm was reportedly unresponsive and offered little recourse beyond contacting the bank to renegotiate. Looking back, Fernando believes that seeking timely help from the bank might have produced a different, more favorable outcome.
What to consider before signing a contract?
Before entering any contract with a bank or a law firm, it is crucial to review all associated costs. The fixed portion covers fees for the lawyer, while any variable portion corresponds to legal costs, Banqmi’s finance expert explains. Unfortunately, many plaintiffs, like Fernando, sign without thoroughly reading the terms and later discover unexpected charges.
Gallardo adds that a lack of information and transparency is a common basis for complaints. This concern has found support in a decision by the European Court of Justice (CJEU), which ruled that a withdrawal order imposed by a Sevilla-based law firm was misleading for choosing to engage that firm. The advice is to negotiate with the bank and avoid winding up in court solely over setup costs.
The CJEU noted that some lawyers demanded non-compliance fees higher than those originally agreed. Although the contract may include a clause imposing penalties if the client settles with the bank without mediation, the court found that the lawyer should have clearly explained the clause, as it could contravene EU rules against unfair practices toward consumers. The result underscored the need for clear, upfront disclosures in these matters.