The declaration of usury in personal loans has gained great relevance in recent years due to the high interest rates agreed in some contracts. In Spain, the Law on the Repression of Usury It establishes that a loan is considered usurious when the interest is "significantly higher" than the average market interest and "disproportionate to the circumstances of the case."
What is considered usurious interest?
To know if a personal loan is usurious, the essential thing is to compare the APR (Annual Percentage Rate) of the contract with the average market interest published by the Bank of Spain, taking into account the most specific category.
For example, if in 2014 you signed a €14,000 loan with an APR of 14.55 %, and the market average was 8.13 %, your loan would be more than 6 percentage points higher than the average. This makes it susceptible to being declared usurious, unless there are exceptional circumstances (lack of collateral, debt refinancing, etc.).
Supreme Court Criteria
He Supreme Court has strengthened consumer protection by setting clear guidelines:
6-point differential. A loan can be declared usurious if the APR exceeds the average by 6 points, unless there are special circumstances that justify it.
Justified exceptions. In 2023, the Supreme Court ruled that a loan with an APR of 17.25% (average of 11%, 6TPR) was not usurious because it was used to refinance previous debts with a high risk of default.
Extremely high interest rates. In 2024, Supreme Court Ruling 697/2024 declared a loan that exceeded the market average by 12 points to be usurious, considering this margin "disproportionate" and without possible justification.
Microcredits and revolving cards. Courts are voiding contracts with exorbitant APRs (even higher than 3,000 % per year) due to usury and a lack of transparency.
Revolving: mandatory transparency. In addition to usury control, revolving credit card contracts must clearly state the amortization system and APR. Failure to do so may result in their being declared void.
Deadline for claiming. Although the nullity of the contract does not expire, the right to claim the overpayment has a period of 5 years from the out-of-court claim or lawsuit.
What to do if you think your loan is abusive?
Review your contract. Check the APR and compare it with the average published by the Bank of Spain in the year you signed.
Claim to the bank. If you find the interest rate is much higher, request the contract's annulment. If it's declared void, you'll only repay the principal amount borrowed, and the bank must reimburse you for the excessive interest paid.
Sue if necessary. If the bank doesn't address your claim, you'll have to go to court. Only a judge can declare usury and order the return of the overpayment.
Why complain?
Can recover the money overpaid.
It allows you eliminate abusive interest that is still being applied to you.
You help curb abusive practices in the financial sector.
How can we help you from the office?
In our office, we personally analyze your loan or credit card agreement to determine if it meets the requirements of the Usury Repression Law and the Supreme Court's jurisprudence.
We calculate the difference between your APR and the Bank of Spain's market average.
We advise you on the viability of a out-of-court claim and we draft the communications to the bank.
If necessary, we present the lawsuit to request the annulment of the contract and the return of the abusive interest.
We support you throughout the entire process with a practical, clear approach geared toward helping you recover what's rightfully yours.
If you suspect that your loan is usurious, don't wait any longerReviewing your contract can mean the difference between continuing to pay exorbitant interest rates or getting your money back.