A loan subscribed with 211% interest is canceled for usury.
The Estonian company Bondora will return the amount collected for remuneration interest to the Palencia client · The cost of the loan of 1,590 euros was raised at the end to 4,182.37.
The court of first instance number 4 has ordered the financial entity Bondora, based in Estonia, to cancel a credit agreement signed with a client in the capital. The titular judge has estimated the usury of the contract, since an interest of 211.03% APR was applied, a figure that exceeds by more than 200 points what is established as the average interest of consumer loans
The client, burdened by astronomical interests that made payment impossible, put the case in the hands of a leading legal company in revolving credit card claims and abusive credits, Don Recuperador (www.donrecuperador.com)
. In fact, the matter has been defended by its legal director Antonio Castro, who indicated that his client requested from Bondora an amount of 1,590 euros as a loan and that the amount to be returned, after interest applied, amounted to 4,182.37 euros.
PIONEERING FAILURE. With this ruling, a pioneer in Spain, Bondora has been sentenced to annul the contract for usury in application of a Law in force in Spain since 1908, with the consequent obligation to return to the actor the excess that he would have paid in that concept; all this, with express imposition of the procedural costs to the defendant.
The ruling issued by the court of first instance number 4 indicates that the contract that is the subject of the lawsuit "is notably higher than the normal one for money", after comparing it with "the active interest rates applied by credit institutions and financial establishments credit according to the statistics published by the Bank of Spain for the year of subscription of the contract in question, 2017, and this in relation to consumer loans.
The average interest on consumer loans on the date the contract was concluded was 8.39%, while Bondora applied a 211.03% APR to the client, according to the information provided to this newspaper by the client's legal defense Palencia.