The ruling on a revolving credit card announced today does not question the validity of this financial product

In light of the ruling from the Supreme Court announced today, the Spanish Banking Association (AEB) and CECA consider that:

• The ruling on a revolving credit card announced today does not question the validity of this financial product and confirms that its interest rates should be compared with those of such products, which are different from other consumer financing.
• The Supreme Court understands that this type of card is a commercially distinct product from traditional consumer financing and is subject to greater uncertainty due to the increased difficulties in recovering funds in case of default.
• Additionally, the Supreme Court warns that the interest rate should not be “manifestly disproportionate to the circumstances of the case,” thus limiting the effects of the ruling to the case analyzed, without any conclusions being drawn regarding the entire category of such products.
• The characteristics of this type of product marketed in Spain are similar to those offered in neighboring countries.