Understand that interest exceeding 20 percent is no longer admissible in any case
Justice has made it official. Revolving cards that accumulate disproportionate interest are usury. This has been determined by the Supreme Court, which in its resolution considers proven that the contracts of revolving cards that apply “interest rates above the normal price of money” and that are “manifestly disproportionate” are “usury” and must be immediately annulled . The Supreme considers abusive the interest rate of revolving credit cards that reach even 27%, so the credit contracts made for this purpose are void. These considerations are made by the Civil Chamber of the Supreme Court in the sentence where it rejects the appeal filed by Wizink Bank against a sentence that had declared the annulment of a revolving credit agreement through the use of a card for considering the user the remuneration interest, initially set at 26.82% APR and that had stood at 27.24% at the date of filing of the claim.
In the case that analyzes the sentence, the control of the stipulation that sets the remuneration interest could also have been carried out through the incorporation and transparency controls, typical of the control of the general conditions in contracts concluded with consumers; however, in this case the plaintiff only requested the nullity of the credit operation due to its usury nature, that is, based on the Usury Repression Act of 1908. The Plenary of the Chamber considers that the reference of “normal interest of the money »to be used to determine whether the remuneration interest is“ usurious ”should be the average interest applicable to the category to which the operation in question corresponds, in this case the average rate applied to credit operations through credit cards and revolving published in the official statistics of the Bank of Spain.
Thus, in determining when the interest of a revolving credit is usury, the Chamber takes into account that the average rate from which the comparison is made, something higher than 20% per year, is already very high. For this reason, a difference as appreciable as the one in this case, in which the interest rate set in the contract greatly exceeds the index taken as a reference, must be considered as significantly higher than that index and, therefore, usury