Revolving cards have become a real headache for many consumers in Spain. If you have been paying an ever-increasing debt for years, or if you are surprised by the interest you are paying each month, you are probably affected by this type of financial product.
At BUFET GÓMEZ FERRÉ, lawyers specialising in banking law, we help you to claim revolving cards and other abusive banking clauses to defend your rights and recover your money.
What are revolving cards?
Revolving cards are a type of credit card that allows you to defer the payment of purchases made through fixed monthly or percentage monthly instalments. At first glance, they may seem like a useful tool for controlling your spending, as you choose how much to pay each month. However, what many people are unaware of is that these types of cards charge very high interest rates, which makes the debt lengthen and become almost endless.
How do revolving cards work?
The main problem with revolving cards lies in their low fixed monthly repayment system, which results in little or no repayment of the capital borrowed. Instead of reducing the debt, a large part of the repayment is used to cover abusive interest, fees and insurance associated with the card contract, resulting in a constant indebtedness effect: the outstanding capital remains the same or even increases over time.
As a result, many consumers end up paying for years and, in some cases, up to three times the amount actually spent. This financing model masks a financial trap that can lead to a situation of over-indebtedness that is difficult to reverse if legal action is not taken in time.
Why are revolving cards abusive?
In Spain, abusive revolving cards have been the subject of numerous legal claims. The Supreme Court has declared that these contracts may be null and void if they apply usurious interest rates, i.e. significantly higher than the average market rate.
For example, if your card applies an APR above 20%, it is very likely to be considered usurious, especially if it is several points above the average interest rate published by the Bank of Spain. In addition, many banks have marketed these cards without due transparency, hiding or minimising the real conditions of the contract.
How to claim a revolving card
Claiming a revolving card is not a complicated process if you have the right advice, here is the common procedure we generally follow:
1. Step-by-step procedure:
- 1. Analysis of the contract and documentation
We review the contract and the bank statements to determine whether there are abusive clauses, non-transparent conditions or usurious interest rates that may be considered null and void according to the current case law of the Supreme Court.
- 2. Out-of-court complaint to the bank
Once irregularities have been detected, we initiate a formal complaint to the Customer Service Department of the bank issuing the revolving card. In this phase, we request the nullity of the contract and the refund of the amounts paid in excess due to abusive interest, with the aim of reaching a solution without the need to go to court.
- 3. Complaint to the Bank of Spain
If the bank does not respond within a reasonable period of time or the response is negative, we take the complaint to the Bank of Spain, a regulatory body that can issue a favourable report to the consumer. Although its resolution is not binding, it can strengthen the client’s position in the event of a future lawsuit.
- 4. Legal action
When the entity rejects the claim or remains silent, we take the next step, which is to file a legal action to cancel the revolving card. In this process, we ask for the contract to be declared null and void due to usurious interest and for the return of all the amounts paid in excess, including abusive interest and commissions. Having the help of lawyers with extensive experience in this type of proceedings will give you a high percentage in a favourable resolution.
In any case, a law firm specialising in revolving card claims has extensive and proven experience in this type of procedure. If you decide to take legal action, at BUFET GÓMEZ FERRÉ we can adapt a personalised legal approach to your case, taking into account your specific circumstances and the details of the contract, to maximise the chances of success in the claim.
2. Documentation needed to claim revolving cards
In order to initiate a revolving card claim successfully, you must have all the necessary documentation that will allow the revolving card lawyers to analyse your case in detail. Generally, the basic information you will be asked to provide includes:
The more documentation you have, the more solid your claim will be, allowing you to detect possible abusive clauses, usurious interest rates or practices contrary to consumer protection regulations. If you have any doubts about how to compile these documents, at BUFET GÓMEZ FERRÉ we can thoroughly review your financial and legal situation, help you compile the documents and guide you through all the steps of the procedure up to the legal claim.
3. Other abusive bank clauses that you can claim against
In addition to revolving cards, many banks have incorporated abusive clauses in other financial products. These practices, although frequent, can be legally challenged and, in many cases, judicially annulled. Some of the most common abusive banking clauses that can affect consumers are:
- Excessive or disproportionate overdraft fees.
- Interest rates well above average market values.
- Charges for services not contracted or requested, such as linked insurance, SMS alerts, among others.
- Floor clauses in mortgage contracts, which prevent benefiting from reductions in the Euribor.
- Unjustified penalties for early loan or credit cancellation
4. Legal alternatives for claiming revolving cards
In addition to the most common legal avenues for claiming revolving cards (such as complaining to the bank or filing a lawsuit), there are other options that can be considered on a case-by-case basis. These alternatives may offer quicker solutions or be adapted to specific situations:
- Renegotiation of the contract with the bank: Some banks are willing to revise the terms of the contract if the customer requests it, including removing abusive clauses, reducing the interest rate applied or establishing a more favourable payment plan for the consumer. Although it does not guarantee the return of overpayments, it can prevent the debt from continuing to grow.
- Arbitration or mediation: Although infrequent in banking cases, if the institution is a member of the consumer arbitration system, the customer can request mediation, which could allow disputes to be resolved without going to court, with an award that in some cases may be binding.
- Debt grouping or reunification with more favourable conditions: If the client has several debts (revolving cards, personal loans, etc.), he/she can consider the possibility of a debt reunification with another entity. This does not eliminate past abuse, but it can reduce the total cost and facilitate repayment with a single, more affordable instalment. This solution should be analysed with caution and with the help of a lawyer specialised in banking law.
- In case of serious over-indebtedness and when the debt generated by revolving cards cannot be paid, it could be considered to initiate a Second Chance Law procedure that could help you to cancel debts, although it requires the fulfilment of certain requirements.
If you think that your situation could fit into the latter scenario, we invite you to consult our article on the Second Chance Law, where we explain who can take advantage of this procedure and how it works step by step.
Having lawyers specialised in banking law such as our law firm in Barcelona can increase a favourable resolution, as putting yourself in the hands of experts can help you to study the best legal strategy to recover the money you have overpaid.
Frequently Asked Questions
As a general rule, you can claim up to 10 years back from the last interest payment, but it is advisable to act as soon as possible to avoid the statute of limitations.
Yes, if the judge considers the contract null and void for usury or lack of transparency, you can recover all the interest and fees paid and in many cases even settle the outstanding debt.
It is not mandatory but it is highly recommended. Banks often offer unfavourable settlements to the client if the client claims without legal representation and an experienced revolving card lawyer will ensure that you recover more than you might be able to achieve on your own.
Free lawyer consultation – Lawyers specialised in banking law
At BUFET GÓMEZ FERRÉ we have a team of lawyers specialised in banking law with extensive experience in claims against abusive revolving cards.
From our law firm in Barcelona we can analyse your case with a free initial consultation without obligation and advise you on the best way to proceed to recover your money, in addition, you can trust us thanks to the billing model to result, where the cost of our service is based on the success of the claim. Don’t let abusive revolving card interest rates trap you in endless debt, start your claim process today.
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