When is SAD considered abusive?

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Default interest, on the other hand, is what the debtor must pay to the creditor for non-payment of a debt, as compensation.
In the case of remunerative interest, when the interest is excessive, we will be talking about usurious interest , that is, there is usury. And regarding default interest, the concept that we must use is that of abusive interest .

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How can we know when it is an abusive SAD?
Usury is established in the Usury Law. Although it is an old law, it is Chinese Overseas America Number Data  still in force today. This Law does not establish a specific reference rate that indicates when the loan interest is considered abusive.

So, to know if we are faced with a usurious interest, jurisprudence sets as a reference “the normal or habitual interest , in conjunction with the circumstances of the case and the freedom that exists in this matter.” To know it, we must resort to the reference of the Bank of Spain.



Thus, before signing a mortgage loan you should compare the interest rate they want to charge you with the average interest rate to check that it is not abusive.

What can you do if you have a loan with an abusive APR?
In the event that you have verified that you have a mortgage loan with an APR well above the Bank of Spain's reference rate, you can start a judicial procedure. The consequences, if it is a remunerative interest,  may be:

The nullity of the loan .
The return by the borrower of the money borrowed .
The return by the lender of what exceeds the money lent.
If it is an excessive default interest , that is, compensation for delay in repayment of the loan, the consequences will be:

Nullity of the default interest clause.
Suppression of the increase in the agreed default interest rate.
Accrual of remunerative interest.