Abusive clauses of Internet loans
In recent years, taking out quick loans over the Internet has become extremely popular. These products are advertised with messages such as “immediate cash”, “up to 300 euros in minutes” or “no paperwork or guarantors”. These types of loans, commonly known as microcredits or fast online loans, have become an alternative for many people who need immediate liquidity.
However, the ease and speed with which these loans are granted is often accompanied by very high economic conditions and, in many cases, clauses that may be considered abusive for consumers.
On various occasions, consumer protection agencies have warned about the practices of certain companies operating in the online quick loan sector. These include extremely high interest rates, disproportionate penalties for late payment or unclear contractual conditions for the consumer.
In some cases, loans have been detected with interest rates that reach extraordinarily high figures, even with APRs that can exceed several thousand percent. The companies offering these products usually justify these conditions by claiming the high risk of the operations, since they are granted in a matter of hours, without collateral and with very few requirements for the applicant.
However, the fact that the loan is granted quickly or without guarantees does not mean that any contractual condition is valid. Spanish law protects consumers against abusive clauses and against contracts that may be considered usurious.
In this sense, consumer protection regulations establish that those clauses that generate a significant imbalance between the rights and obligations of the parties to the detriment of the consumer will be abusive. These situations are mainly regulated in the
Texto Refundido de la Ley General para la Defensa de los Consumidores y Usuarios (Revised Text of the General Law for the Defense of Consumers and Users)..
In addition, when the interest rates applied in a loan are excessively high, the contract may be considered usurious, which would allow to request its nullity. These types of situations are analyzed in accordance with the
Law for the Repression of Usury.
In recent years, Spanish courts have analyzed numerous cases related to quick loans and microcredits, assessing whether the interest rates applied were disproportionate to the market. In several decisions, the
Supreme Court
has confirmed that certain interest rates may be considered usurious when they are significantly higher than those customary in similar transactions.
When a loan is declared usurious, the contract can be annulled and the consumer would only be obliged to return the capital received, without having to pay interest.
Therefore, before taking out a quick online loan, it is important to carefully read the terms and conditions of the contract, check the interest rate applied and assess whether the penalties or fees may be disproportionate.
In case of doubt or if it is considered that a loan contains abusive clauses or excessive interest, it is advisable to analyze the contract with a professional to assess whether there is the possibility of claiming or requesting the nullity of the contract.
Diana Caballero Aguirre
Founding Partner of Martínez Caballero Abogados
