The revolving credit card trap in Spain

Key rules

• Revolving card: A card that charges interest on an unpaid balance and restores your credit with each repayment can keep you in debt for years.
• Usury: If a court finds the interest usurious, you repay only the capital and the bank returns the excess.
• Bank complaint: The SAC must answer within 15 working days, or one month for payment services.
• Court: You can go straight to court; the Banco de España report is not binding and not a required first step.

What a revolving card is

A revolving card lets you repay a small monthly instalment while the rest of the balance grows with interest. Each repayment restores your available credit, so the debt shrinks slowly and can last for years. Many cards of this kind are sold as ordinary store or bank cards.

Compare it with the other types:

• A debit card takes each purchase straight from your account.
• A credit card with deferred payment collects all the month's purchases together, usually the next month, normally without interest.
• A prepaid card only spends money you loaded first.

How to recognise one

Look at your contract and statements for these signs:

• A fixed monthly instalment, either a set sum or a percentage of the balance.
• A payment mode called "pago aplazado", "cuota fija", "crédito revolving" or "crédito permanente".
• A TAE (the yearly cost of the credit, including interest) often above 20%.
• Statements where most of the instalment is interest.
• A card that defaults to the instalment mode unless you ask to pay in full.

Check the TAE, the instalment and the repayment mode. If you are unsure, ask your bank to confirm in writing which mode your card uses.

When the interest can be void

A 1908 usury law makes a loan void if the interest is notably higher than normal and manifestly disproportionate to the circumstances. The Supreme Court has applied it to revolving cards.

• In 2015 it held that a TAE of about 24.6% was usurious.
• In 2020 it ruled that the comparison is the average rate for revolving cards, not for consumer credit in general. A margin of several points over that average can be usurious.
• In 2022 it confirmed this and treated a TAE above about 20% as usurious when the average was lower. The bank must prove any special circumstances that justify the rate.
• The rate is judged as it stood when you signed the contract.

The Banco de España publishes the average rates. A rate far above the average for your product and date is a strong sign of usury. A high rate alone does not automatically make the contract void, so each case is judged on its facts.

What you get back

If a court declares the contract void for usury, you repay only the capital you borrowed. The bank must return what you paid above that capital, usually with interest and often with costs.

How to claim

1. Complain to the bank. Send a complaint to its customer service department (SAC). It must reply within 15 working days, or one month for payment services.
2. Go to the Banco de España if needed. If the bank rejects you or does not answer within a month, complain to its market conduct and complaints department. Its report is not binding on the bank.
3. Go to court. You can sue without going through the Banco de España first. Many people file in the first-instance court where they or the bank are based, asking for the contract to be declared void for usury. Other claims argue lack of transparency or abusive clauses.

Whether you need a lawyer and a court representative (procurador) depends on the amount and the type of procedure. Ask the court office or a consumer association before filing.

The timeline and warnings below set out the steps and the main traps.

Timeline and deadlines

• Send a complaint to your bank's customer service department (SAC): As soon as you spot excess interest

• Complain to the Banco de España's market conduct and complaints department if the bank rejects you or does not reply: After one month without an answer, or after a rejection

• Go to court and ask for the contract to be declared void for usury: Any time, including straight after the bank's reply or without any complaint

What to watch out for

• A card that looks harmless can be a revolving card: Many cards default to a fixed monthly instalment, so the debt barely falls while interest builds on the balance. Rates often pass 20% TAE. Look for a fixed instalment and for the words 'pago aplazado', 'cuota fija', 'crédito revolving' or 'crédito permanente'. Check the TAE, the instalment and the repayment mode in your contract. Ask your bank in writing to switch to payment in full each month.

• Not every high rate is void: A contract is void for usury only if the interest is notably higher than the normal rate and manifestly disproportionate. A rate near the average for revolving cards may not qualify. Compare the TAE in your contract with the Bank of Spain average for revolving cards at the time you signed.

• A rejected or ignored complaint is not the end: The bank may reject your complaint, and the Banco de España's report does not bind it. If you stop there, you keep paying the excess interest. If the bank rejects you or does not reply within a month, you can go to court and ask for the contract to be declared void for usury.

Frequently asked questions

Does the usury law apply to my credit card?

Yes, the 1908 usury law applies to revolving cards, so a contract can be void if its interest is notably higher than normal and manifestly disproportionate. The Supreme Court compares your rate with the Bank of Spain average for revolving cards, not for consumer credit in general. The rate is judged as it was when you signed.

What rate has the Supreme Court treated as usurious on a revolving card?

The Supreme Court has found a rate of about 24.6% TAE usurious, and later said a rate above about 20% can be usurious when the average was lower. What counts is how far your rate sits above the average for revolving cards at signing. The lender must prove any special circumstances that justify the higher rate.

How much do I get back if the court declares my card contract void for usury?

You repay only the capital you borrowed, minus what you have already paid. The bank returns anything you paid above that capital, with interest and often court costs. Your own payments are counted against the capital first.

Do I have to go to the Banco de España before suing the bank?

No, you can go straight to court without a complaint to the Banco de España. Its report is not binding on the bank, but a complaint is a cheaper first step if the bank's own customer service rejects you.