A few days ago, the Spanish Supreme Court ruled that a so-called "revolving" card with an interest rate of 24.5% was not usury, contrary to what it had ruled a couple of years ago.
And what are these "revolving" cards? Well, we are talking about those famous cards, which defer and split payments. And we are also talking about "usury", those excessively high interest rates.
Well, two years ago, the Spanish Supreme Court, in a judgement of 4 March 2020, gave us a surprise when it said that these contracts should be considered usurious if the interest rate exceeded the "normal interest rate for money", which was set at 20%.
Now, in a judgement of 4 May 2022, the Spanish Supreme Court ruled that an interest rate of 24.5% could NOT be usurious. Surprise!
Social Networks have been ablaze, and the Spanish Supreme Court has had to calm the wild beasts. It affirms that it does not contradict itself, that it only refers to this specific case.
In short, the Spanish Supreme Court has still not decided when usury is considered usury. We will have to believe in its jurisprudence and continue the "workers'" struggle. Read more.