Good news for those affected by 'Revolving' cards: they can recover up to 20,000 euros

Good news for those affected by ‘Revolving’ cards: they can recover up to 20,000 euros

Good news for all Affected by ‘Revolving’ cards or with postponed payment methods, those that allow customers to buy today and pay the following month, but with a high interest: they can recover, on average, Between 2,000 and 20,000 eurosaccording to the platform Claims.

The reason? The decision of full of the First Chamber of the Supreme Court, which issued two sentences establishing the criteria to consider these abusive products.

Because? Among other reasons, the Supreme Characteristics of ‘Revolving’ cards and their risks. This information must be presented properly and at the right time.

Specifically, it should be facilitated before the signing of the contract and exposed transparently, including the relationship between the high TAE, the mechanism for the recomposition of capital and other clauses that influence the generation of risks.

A sentence focused on the consumer understanding what he is signing

The objective of the Supreme is that the Average consumer understand the contract you sign. Therefore, according to the High Court, “the information must allow the average consumer to understand the product offered, become aware of the risks derived from the indefinite or extendable term automatically, the high interest rate, the constant recomposition of the credit, the low amortization of capital in the case of low quotas and anatocism.

Clauses are not declared abusive automatically

However, according to the Supreme, the Lack of transparency It does not automatically imply that a clause is abusive. However, in the case of the ‘revolving’, “it is not harmless” for the consumer, since it causes “a serious imbalance.”

For claims, the criteria of the Supreme They are trapped in a debt that does not stop growing.

Debts between 2,000 and 20,000 euros

According to the Legal Services Company, debts vary depending on the year of contracting the loan or interest rate, but on average They ascend about 2,000 euros. However, in some cases they can reach 20,000 euros.

Now that the Supreme Court has seated criteria, the firm advises those affected to collect the contract signed for the acquisition of the card and the amortization table of the payments made, in order to initiate a claim.

Finally, he recommends being “very prudent and not getting carried away by the messages of the companies that sell these types of cards, which only show the positive part.” According to the firm, “the reality of these credits is that they chain consumers for years, without them really knowing when they will pay off due to this payment system.”

What is a ‘revolving’ card?

According to the definition of Bank of Spain, The ‘revolving’ cards are a type of card with a specific credit limit, which can be returned in installments by periodic quotas. These can be established as a percentage of the existing debt or as a fixed fee, which the user can choose and modify within the minimums established by the entity.

Its particularity is that the debt derived from credit is ‘renewed’ monthly: it decreases with the payments of the fees, but increases with the use of the card (purchases, reimbursements in cashiers) and with the interests, commissions and other expenses generated, They are also financed. This mechanic has consequences:

  • If the monthly fee is low in relation to debt, the amortization of the principal will last over time, generating high interest.
  • It is not possible to issue a previous amortization picture, as with a traditional loan, since debt and quotas can vary monthly.