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Asesority reveals high hidden costs in the APR of revolving cards, challenging financial institutions to improve transparency and fairness in their practices
Vigo, April 11, 2024.- After years of complaining to banks about the nullity of revolving cards, Asesority Abogados has revealed crucial information about the Annual Equivalent Rate (APR) associated with these financial products. Although the card contracts revolving loans usually indicate an APR of 22%, in reality, the rate can be significantly higher, even reaching 70% due to the capitalization of interest. This is due to the capitalization of interest: The monthly interest payment is calculated on an outstanding debt that already includes interest from previous periods. This situation represents a serious risk of debt for users, who are often unaware of the real cost of their credit. The main concern is that these cards, offered as an easy and accessible credit solution, can lead to a spiral of debt due to the lack of transparency in their conditions. Asesority’s legal team has identified numerous cases in which the lack of clarity in the terms of revolving cards has led consumers to accumulate unexpected debts. These cases highlight, once again, the need for stricter regulation and more ethical practices in the financial sector. With its initiative, Asesority not only seeks redress for those affected, but also encourages a change in the way banks and credit institutions operate, putting consumer well-being first. The goal is to void contracts that are considered usurious or lack transparency, thereby protecting consumer rights. Advesority is currently involved in legal action to address these issues and insist on the need for change in the financial sector. In order to encourage those affected, the firm offers free advice to those affected and actively works to educate consumers about their financial rights.
Contact Contact name: Sonia Seoane Mirás Contact description: Asesority Abogados Contact phone: 986223341
