Revolving card interest falls to 22.86% after Supreme Court ruling | Companies

The interest rates of the revolving cards have been reduced from 25.2% to 22.86% APR of the current average, after the majority of financial market operators have lowered their prices after the Court’s ruling on March 4 Supreme, according to the Asufin Barometer.

At these prices, financing a purchase of 1,000 euros with a minimum monthly payment of 25 euros means facing 540.83 euros in interest and taking up to six years and two months to pay off the entire debt, without taking into account other possible costs. like the annual fee charged by many cards.

In this way, the entities have lowered the APR of their cards in order to avoid litigation, such as WiZink itself, the subject of the case that reached the High Court and established jurisprudence.

The bank, owned by the Värde Partners fund, has cut interest rates from 24% in December 2019 to 20%, leaving the APR at 21.94% compared to 26.82% six years ago. months.

Prices have also dropped Bankinter Consumer Finance, which leaves its Bankintercard at 19.99% APR (compared to 26.82% previously); Banco Sabadell, which lowers its Visa Shopping to 18.86% (compared to 26.82% previously), and Deutsche Bank, which does the same with its Visa Shopping DB and places it at 18.16% (compared to 23, 87%).

However, other entities have left their prices intact, such as Openbank, which does not alter the 39.82% APR of its Diamond Infinite Credit, remaining the most expensive in the market.

Bankia’s shopping card remains at 26.08% APR in December; so does CaixaBank’s Visa & Go, at 24.9%; the Carrefour Visa Pass, at 21.99%; the EFC Spymp (formerly Evo Finance), at 20.99%, the two BBVA cards, at 18%.

Read Also:  Ministry of Food and Drug Safety “A domestic antibody treatment development company reveals plans to apply for use approval within this month”

The Abanca Visa Proyecta continues at 11.99% and is positioned for the second consecutive time as the most affordable revolving card on the market.

In any case, Asufin has warned that, despite the decline in interest rates on revolving cards, they are still more expensive than other financing products.

The average of 22.86% this June represents 4.17% more than the last average interest rate for credit cards and revolving published by the Bank of Spain, which was 18.69%.

In addition, if compared to the average of loans from one to five years, the difference is 15.97%, which means that if you finance a purchase with a revolving card, you will pay 3.3 times more in interest than if you make it with a loan.

The Supreme Court acknowledged in its writing that, unlike other neighboring countries, where the legislator has intervened by setting percentages or specific parameters to determine from what interest rate a credit operation should be considered usurious, in Spain the regulation of usury, which exceeds the century of validity, is “indeterminate”.

Finally, the magistrates of the Civil Chamber of the Supreme Court determined that revolving card contracts with interests above 20% will be considered usury, which is the level at which the “normal interest of money” has been established and from where part to make the comparison.

Thus, applying as a current reference 20% for the normal interest rate of money, it indicates that the higher this index -which may vary depending on the data published by the Bank of Spain- the less margin there will be to increase the price of the credit operation without incurring usury.

Read Also:  Bargain festival Black Friday is coming: 'Buy things that really benefit you' | Instagram

Revolving are credit cards in which there is a certain credit limit that can be returned in installments, through periodic installments, but their peculiarity is that the debt derived from the credit is renewed monthly. The interests so high that they finally have to be paid have caused a succession of lawsuits in the courts.


Share on facebook
Share on pinterest
Share on twitter
Share on linkedin
Share on email


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.