Revolt against revolving credit

Revolt against revolving credit
Revolt against revolving credit Credit: Facebook John Redwood

IN 2015, the Supreme Court rejected Sygma Hispania bank’s appeal against returning a client’s overcharged interest. 

The client was paying 24.6 per cent interest on a consumer loan where the credit was automatically renewed as the debt was paid off. 

This prompted the Supreme Court’s decision that this type of “revolving credit” was usury in accordance with Spain’s 1908 Azcarate Law. 


“The personal loan included a stipulation of interest that was notably higher than normal and was manifestly disproportionate in relation to the circumstances of the case,” the court ruled. 

The decision did not go unnoticed by a group of lawyers in Avila. 

“We realised that although the verdict was the result of an appeal by a financial body, we could take the initiative in this type of case,” explained Celestino Garcia Carreño. 

Since then the Avila law office has launched more “revolving credit” usury cases than any other in Spain. 

“I don’t know how many appeals we have presented but have had more than 1,000 favourable verdicts obliging banks to return what was overcharged,” Garca Carreño said. 

Linda came to Spain to live when she was 24, just over 52 years ago, and her husband is Spanish. She began writing for English-language local newspapers in the mid-1970s and hasn’t stopped since! She leads a Spanish life, which she believes is vital when conveying the news to English-speaking residents, and along the way she produced two editions of Expand Your Spanish, helping English-speakers to enlarge their knowledge of the language. She was excited to be in at the birth of the Euro Weekly News in 1999 and is still passionately writing for the paper 22 years later.


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