After years allowing the outrage towards the consumers regarding quick small loans, the Spanish Supreme Court finally decided to act and has limited the high interests of these quick and small credits.
In a plenary session of the Civil section, all the judges decided that those loans whose interest doubles the average interest on the market will be considered usurious and, therefore, they will be void.
This Judgement concerns to every loan or credit, but especially quick loans and small credits. Furthermore, this Judgment has arrived just on time for the Christmas shopping when many consumers decide to get those type of loans or credits for paying the expenses related to the Christmas celebration.
The Supreme Court states that these loans have a higher risk, but this doesn’t mean that it can be a usurer loan with such disproportionate interest rate.
The Supreme Court also states that giving loans with a very high-interest rate, much higher than the normal loans, makes easier the consumers’ over-indebtedness and this has consequences for the people who normally meet their obligations.
Any loan or credit which exceeds the limit will be considered usurious and void. The consequence will be that the consumer will only be obliged to return the amount received without paying any additional interest. Furthermore, the consumer could claim the refund of any amount paid more than enough.
This is another sign that the Spanish Supreme Court has started a crusade to regulate the banking sector which always had many privileges and now is seeing how they are forced to follow the rules and the “anything goes” is not allowed to them anymore.
This is another attempt to protect the consumers who are very vulnerable against the greed of the banking sector.