Arriaga Asociados has issued a warning about the risks associated with revolving credit cards, a type of financing that has gained importance following the increase in debts that many consumers face after the January financial strain. This method of credit, which appears to be a convenient solution for payment of purchases or obtaining cash, has a dark side: high interest rates ranging between 20% and 30%, much higher than those of traditional personal loans.
The use of these cards allows users to defer their payments, but the reality is that, in numerous cases, people who take them out end up in a complicated situation. Many consumers, after years of paying installments, find that their debt has not decreased, leading the legal firm to emphasize the importance of taking action against these contracts, which may be considered abusive and therefore voidable from a legal perspective.
Arriaga Asociados specializes in assisting those who suffer the consequences of this type of debt. Their team conducts a detailed analysis of monthly receipts and the revolving credit card contract. If it is determined that the applied interest rate (APR) exceeds the average published by the Bank of Spain by more than six points, the contract could be declared null and void due to usury. The lack of clear and transparent information provided by banks can also be a valid argument to claim the refund of excessive interests and fees.
Affected consumers have the option to request the nullity of their contract and claim amounts that exceed the capital borrowed, including both interests and fees. Those who have paid more than they received can demand the refund of that difference; while those still paying their installments can cancel the interests and fees, only being obligated to pay the remaining capital.
Despite the fact that as of January 2021 there is a regulation requiring financial institutions to carry out prior solvency studies and provide clear and periodic information on revolving credit card conditions, the reality is that many of them are not complying with these obligations. This lack of effective regulation contributes to perpetuating situations of debt that affect thousands of consumers in the country.
Since its foundation, Arriaga Asociados has defended over 10,000 cases of individuals harmed by revolving credit cards, and their commitment remains strong in helping consumers free themselves from these abusive contracts and recover the money they have overpaid. Those interested in receiving advice on how to proceed with their claims can turn to the specialized services offered by this firm.
via: MiMub in Spanish