Some cards get paid every month and the balance barely moves. If that is your case, you may be paying abusive interest, and it can be claimed back. We explain how it works and what you can do.
What is a revolving credit card?
A revolving card is a form of credit in which what you spend is automatically refinanced: you pay a monthly instalment (often a low one) and the debt "refills" itself. The problem is that the interest tends to be very high, far above what an ordinary personal loan costs, so a large part of the instalment goes on interest while the principal barely goes down. Many people have been paying for years and still owe almost the same as at the start.
Why can they be abusive?
Spanish usury law renders void any credit charging interest notably higher than the normal cost of money and manifestly disproportionate to the circumstances of the case. One point is worth making clear from the outset: there is no fixed percentage above which a card automatically becomes usurious.
The test was set by the Supreme Court in judgment STS 258/2023, of 15 February: the card's rate must be compared with the average rate published by the Bank of Spain for that type of credit, as it stood when the contract was signed. Usury only arises where the margin above that average rate is notably higher; later case law has placed it in the region of six percentage points, but this is neither a mathematical rule nor a guarantee of the outcome.
This means the same APR may be claimable under one contract and not under another, depending on the year it was signed and the average rate in force at the time. That is why each contract has to be reviewed on its own terms. Beyond usury, a lack of transparency at the time of signing or certain fees may also be claimable.
What can you recover?
If the claim succeeds and the interest is declared void, the usual outcome is that you only have to return the principal that was lent to you: everything you have paid above that principal (interest and fees) must be refunded to you. How much that comes to in each case depends on what has been paid and over how long, and can only be said with the statements in front of you.
How to claim, step by step
- Gather the documentation: the card contract and, if you have them, the statements or receipts.
- A lawyer assesses whether the interest is claimable and how much you could recover.
- A claim is filed with the lender to try to reach an agreement.
- If there is no agreement, the claim is pursued through the courts.
At Barnils & Díaz Advocats we review your contract with no obligation and tell you honestly whether it is worth claiming. Find out how we handle bank claims or book a consultation.
