Revolving credit cards, what do I do if I have one?

November 13, 2020
By TeichForum

Revolving credit cards continue to accumulate thousands of claims due to their abusive interests . The main problem for many citizens is that they are not aware that they are being affected by revolving credit cards , since they do not know that they have one.

These revolving cards are dangerous for two main reasons:

  • They have abusive interests associated with them, which become a nightmare for the victims.
  • The way to return the credit through deferred payment can lead to the injured person never finishing repaying that debt.

If you have a credit or deferred payment card and you are paying your credit card fees but the amount of your debt does not go down , you should be careful; You are very likely one of the thousands of people harmed by revolving credit cards!

Revolving credit cards

Revolving card, what is it?

The revolving credit cards are cards of credit to lend money to its users to meet expenses. This credit provided by the cards is subject to interest that the customer will have to pay as he uses that money . Revolving cards give the possibility of withdrawing money from ATMs and making purchases by postponing the return of the amount that has been spent. Thus, the money that the different financial entities lend us is replenished as the client pays the fees.

The main difference between revolving credit cards and traditional credit cards is the way in which the interest that your customers will have to pay is calculated. The interests of the revolving cards are much higher than those of the traditional cards and these will increase monthly; making the holders end up having difficulties to pay the debt that revolving credit cards causes them and, consequently, they are included in a delinquent file .

Currently, the most common revolving credit cards in Spain are those owned by WiZink, Cetelem, Vivus, Cofidis and Carrefour.

Revolving credit cards

Revolving credit cards, how do they work?

Revolving cards work in the following way:

  • The client will contract a card with which he can make purchases and pay for them through a monthly fee.
  • The user will not only pay the corresponding fees, but also a percentage of interest.
  • The client will have two ways to return this money :
    • Percentage: between 5% and 25% of the money spent will be paid, so the fee will vary depending on the money used monthly.
    • Fixed fee: a fee will be set at the time of making the contract and will be maintained every month.

Revolving card interest

These cards offer a credit defined as a financing method subject to a balance renewal automatically and on a regular basis. This credit is associated with a balance limit , which is available for a specified time. When that period ends, the balance is renewed ; returning to be the same as at the beginning of the period. And so on.

The interests of revolving credit cards are very high and are calculated based on the balance that has been used monthly. That is, the less we use the revolving card the money we revolving credit cards we will have to return will be less. However, these financial entities demand, in the contracts signed by their clients, to make a minimum monthly consumption; making sure that the user will pay a significant amount of interest per month. In fact, if the client does not reach that minimum, the financial institutions will charge a penalty commission.

If you have a revolving loan and you are paying more than 20%, the Supreme Court considers it abusive interest; so you must claim it.

Cards revolving sentences

After assessing the number of claims accumulated in the Spanish courts by those affected by revolving credit cards, the Supreme Court declared, on March 4, 2020, that interest on credit cards that exceed 20% will be considered usury . This will be a reason for complaint. Consequently, contracts or loans in which the interest applied is disproportionate are considered void.

The first article of the Usury Law examines why clients accept these types of conditions. This often happens since financial institutions offer very little transparency in contracts and many of the clients do not really know what product they are contracting.

Currently there are still many people who do not know that they are being victims of the abusive interests of revolving cards . There are people who are even paying 27% interest .

Revolving credit cards

Wizink judgment supreme court

WiZink's revolving credit cards were among the most affected by the Supreme Court ruling. This financial entity has already faced more than 300 convictions due to its abusive interests that reach 27.24%.

In the latest Supreme Court ruling against WiZink's revolving credit cards, the victim had been paying abusive interest on the revolving card for 15 years. Today this user can breathe easy thanks to the magistrates of the Court of First Instance and Instruction Number 7 of Getafe; that they declared null the interests of his revolving credit card . The Supreme Court forced Wizink to cancel his card, return 17,102 euros to the customer and cancel his debt of 27,268 for usury.

Get your money back with TeichForum

If after reading this article you are sure or think that you are being a victim of the abusive interests of revolving credit cards, do not hesitate to contact iMorosity. If you are still not sure if your credit card is revolving, check this list of cards and check if yours is here.

Call 301-740-0589 or fill out this form and we will get in touch with you. Claim now and get all your money back!

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