Revolving Cards in Spain: How to Claim for Usury

🇪🇸 Read the original in Spanish

Are you trapped in a debt that seems to have no end, even though you make your payments on time month after month? You are not alone: thousands of citizens in Spain, both nationals and foreign residents, suffer the "snowball" effect of revolving cards. This financial product is designed in such a way that monthly instalments barely cover the interest generated, perpetuating the debt indefinitely. The good news is that Spanish legislation and the case law of the Tribunal Supremo (Supreme Court) protect consumers against these abuses. In this detailed guide from AbogadoAI, we explain step-by-step how to identify if your card is usurious, what laws protect you, and how to make a claim to get your money back.

What is a revolving card and why does it trap users?

A revolving card is a type of credit card where you have a specific credit limit that can be repaid in instalments through periodic payments. Its unique feature—and its danger—lies in the fact that the capital you repay is restored back into your available credit, with interest, commissions, and agreed expenses added to it.

Unlike a traditional loan, where the debt decreases with each instalment until it is extinguished, the monthly instalments on revolving cards are usually very low (for example, 3% of the outstanding balance or a fixed amount of 30 € or 50 € per month). Because the instalment is so small, it goes almost entirely towards paying interest and commissions, barely amortising any capital. As a result, the debt is prolonged indefinitely over time, turning the customer into a captive debtor.

The legal framework: Which laws support the claim?

To successfully claim the nullity of a revolving card contract, legal experts rely on a solid Spanish legal framework. This is not a simple complaint, but rather the rigorous application of our civil and consumer law.

1. The Usury Suppression Act of 1908 (Ley Azcárate)

This century-old statute, fully in force in Spain, is the cornerstone of these claims. Its Article 1 establishes that: > "Any loan contract in which an interest rate notably higher than the normal rate of money is stipulated and manifestly disproportionate to the circumstances of the case, or under conditions that make it leonine, shall be null and void..."

Although revolving cards did not exist in 1908, the Tribunal Supremo has ruled that this article is perfectly applicable to modern consumer credit.

2. General Law for the Defence of Consumers and Users (RDL 1/2007)

If you are an individual consumer (not a business), you are protected by the Real Decreto Legislativo 1/2007 (Royal Legislative Decree 1/2007). This law penalises the lack of transparency and the inclusion of abusive clauses in contracts.

• Transparency control: The bank has an obligation to draft the contract in a clear, simple, and understandable manner. If the print is illegible (the famous "microtext" or tiny print) or if the functioning of the revolving system was not clearly explained, the contract can be declared null and void for lack of transparency, in accordance with Articles 80 and 82 of this law.

3. The Spanish Civil Code

Article 1,303 of the Código Civil (Civil Code) determines the consequences of declaring a contract null and void: > "Once the nullity of an obligation has been declared, the contracting parties must reciprocally return to each other the things that were the subject of the contract, with their fruits, and the price with interest..."

This means that if a judge declares the card null and void, you will only be obliged to return the capital that was actually lent to you, and the bank must return every single cent charged to you in interest, commissions, and associated insurance.

The criteria of the Supreme Court: When is it usury?

The case law of the Tribunal Supremo has defined what type of interest rate—specifically the TAE (Equivalent Annual Rate / APR)—is considered usurious in revolving cards. To determine if the interest is "notably higher than the normal rate of money," the TAE of the contract must be compared with the average interest rate for consumer credit operations of similar characteristics on the date of signing (data published monthly by the Banco de España, the Bank of Spain).

Following the historic rulings of 2020 and the clarification of February 2023, the current criteria are established as follows:

• For contracts signed after the year 2010 (when the Banco de España began publishing the specific statistical bulletin for revolving cards): It is considered usury if the interest rate of the card exceeds the average interest rate of revolving cards on the date of the contract by more than 6 percentage points (or 600 basis points).
• Given that the average rate for these cards is usually around 18% or 20%, any revolving card with a TAE higher than 24% or 26% (depending on the year of signing) has a very high probability of being declared usurious and null by the courts.

Concrete examples with real figures

To understand the economic impact of a claim, let us analyse two common scenarios that we manage within the field of consumer law.

Example 1: The case of Carlos (Outstanding debt is extinguished)

Carlos contracted a revolving card with a financial entity in 2015 with a TAE of 26.8%. Over the years, he has made purchases and cash withdrawals for a total value of 6,000 €.

• Over the years, Carlos has paid monthly instalments totalling 5,500 € (including capital, interest, and maintenance fees).
• The bank is currently claiming an "outstanding debt" of 4,500 € due to the accumulation of interest.
• Result after the claim: Upon declaring the contract null and void due to usury, Carlos only has to return the capital drawn (6,000 €). Since he has already paid 5,500 €, his real debt to the bank is reduced to just 500 €. The 4,500 € that the bank was demanding from him is completely cancelled.

Example 2: The case of María (Cash recovery)

María applied for a revolving credit card in 2012 to finance a home renovation. The applied TAE was 28.5%.

• María used a total of 10,000 € of credit.
• After more than a decade of paying a monthly instalment of 150 €, María has paid a cumulative total of 17,500 € to the entity.
• Result after the claim: The court declares the contract null due to usury. María only had the obligation to return the 10,000 € she spent. Since she has paid 17,500 €, the bank is ordered to return the difference in cash. María receives a deposit of 7,500 € in her current account, and her card is cancelled with no remaining debts.

Practical steps: How to claim step-by-step

If you suspect that your revolving card has usurious interest rates, you must follow a structured procedure to maximise your chances of success and avoid unnecessary costs.

``` [Step 1: Gather Documentation] ➔ [Step 2: Out-of-Court Claim] ➔ [Step 3: Negotiation/Waiting] ➔ [Step 4: Legal Action] ```

Step 1: Gathering documentation

You need to gather the original card contract (showing the TAE) and as many monthly statements as possible. If you do not have them, do not worry: you have the right to formally request them from the financial entity, which is obliged to provide them to you under banking transparency regulations.

Step 2: Submitting the prior out-of-court claim

Before going to court, it is mandatory to attempt an amicable settlement. You must draft and send a claim letter to the Servicio de Atención al Cliente (SAC / Customer Service Department) of the financial entity. In this letter, you must request:

• The nullity of the contract due to a usurious interest rate (under the Usury Act) and/or lack of transparency in the contracting process (under the Consumer Law).
• A detailed breakdown of the amounts drawn and paid.
• The return of all amounts charged that exceed the principal capital lent.

It is essential to send this letter by a reliable method that provides proof of delivery, preferably via burofax (a secure certified fax service) with acknowledgment of receipt and certification of content, or by delivering it by hand at a physical branch, demanding a stamped registration of entry.

Step 3: Response period for the bank

The financial entity has a period of 1 month (if you are a consumer) to respond to your claim, according to financial services regulations. During this time, three things can happen:

1. They accept the claim: They will offer you a refund agreement. Be careful! Analyse the proposal thoroughly before signing (see the mistakes section below).
2. They reject the claim: They will argue that the contract is transparent and the interest rate is correct.
3. They do not respond: Administrative silence after 30 days is equivalent to a rejection, leaving the legal path open to you.

Step 4: Lawsuit

If the bank rejects the claim or offers an insufficient agreement, the next step is to file a lawsuit before the Juzgados de Primera Instancia (Courts of First Instance) of your place of residence. To do this, if the amount of the claim exceeds 2,000 €, it will be mandatory to hire the services of an Abogado (lawyer) and a Procurador (court representative). In the vast majority of cases that meet the usury criteria, the bank is ordered to pay the court costs, meaning they will end up paying your professionals' fees.

Mistakes to avoid when claiming

• Accepting the first agreement the bank offers without reviewing it: Faced with a wave of claims, many entities call customers by phone to offer an "interest rate reduction" or a partial refund in exchange for signing a document where the customer waives their right to take future legal action. Do not sign anything without having a specialist lawyer review it; you could be losing thousands of euros.
• Stopping payments on your own unilaterally: Even if you believe the contract is null, if you stop paying without a judge's authorisation or without having filed the lawsuit, the bank will include you in credit delinquent registries such as ASNEF or Badexcug. This will damage your credit history and prevent you from accessing other financing (mortgages, personal loans).
• Not keeping the contract or statements: Although they can be requested, having the documentation from the very beginning speeds up the process enormously and allows for an exact calculation of the claim's viability from day one.
• Confusing the TAE with the TIN: When reviewing your contract, always look at the TAE (Equivalent Annual Rate / APR), which is the indicator that includes commissions and expenses, and not the TIN (Nominal Interest Rate), which is usually significantly lower and is not the reference value used by judges to determine usury.

Frequently Asked Questions (FAQ)

Is there a deadline to claim a revolving card?

No. The action to declare a contract null and void due to usury is imprescriptible (it does not expire). This means you can claim whether the card is still active or if you already cancelled and finished paying it 5, 10, or 15 years ago. There is no expiration date to recover what you were overcharged.

Can I claim if I am a foreigner residing in Spain?

Yes, of course. Consumer legislation and the Usury Act protect any natural person acting as a consumer in Spanish territory, regardless of their nationality or residency status. The only requirement is that the contract was signed with a financial entity operating in Spain.

How long does the entire claim process usually take?

The out-of-court phase is usually resolved within 30 to 60 days. If it is necessary to go to court, the time will depend on the backlog of the court in your locality, but the average in Spain ranges between 6 and 18 months to obtain a final judgment.

What happens if the bank put me on ASNEF for not paying the revolving card?

If the debt that triggered your inclusion in the credit delinquent registry stems from a card with usurious interest rates, that debt is null and void. In the same judicial proceeding, you can request the deletion of your data from the registry and, in many cases, demand additional compensation for moral damages due to the violation of your right to honour.

Do I have to pay taxes on the money I recover?

No. The money returned to you by the bank following the declaration of nullity of a revolving card is not considered a capital gain, but rather a refund of improperly charged amounts. Therefore, it is not taxed under IRPF (Spanish Personal Income Tax). Only the late-payment interest that the judge may impose on the bank as a penalty in your favour would be subject to taxation.

Summary

• Revolving cards apply an amortisation system that turns debt into an indefinite cycle due to high interest rates and low monthly payments.
• The Usury Suppression Act of 1908 allows contracts with interest rates notably higher than the normal rate of money to be declared null and void.
• The Tribunal Supremo sets the usury threshold for contracts after 2010 when the TAE exceeds the average rate of credit cards in Spain by more than 6 percentage points.
• The nullity of the contract obliges the bank to return all interest, commissions, and insurance charged; you only return the net capital drawn.
• The process always begins with a formal, verifiable out-of-court claim (burofax) before proceeding to legal action.
• The right to claim is imprescriptible, meaning you can recover your money even if the card is already cancelled.

General legal information, not personalised legal advice. For your specific situation, ask your question for free at AbogadoAI — answers grounded in Spanish law (BOE), in English.

This is general information, not legal advice. Verify on the BOE or consult a lawyer for your specific case.