Greece ‘s Supreme Court upheld the 16.5% interest rate charged by banks for credit card debt as legal in a case before the A1 civil section of the court.
The case was brought up by a consumer for a card issued November 16, 2004, at a time when interest rates for banks as set by the ECB and the law stood at 8% annually. The interest rate in the contract for the card was set at 15.9%, rising to 16.5% with the addition of a levy was imposed by law.
After realizing the disparity in the two interest rates, the card-holder took the case to court and won her case before an appeals court. This decision was overturned by the Supreme Court ruling on Friday, which found that the interest rate charged was not illegal and the contract signed by the two parties was not invalid, nor was there an element of illegality to support the card-holder’s claims of wrongdoing nor any grounds under the law for consumer protection.
The Supreme Court judged that there had been no violation of the rules of transparency, which was the fundamental principle of consumer protection, while the financial consequences in the specific term of the contract were clearly laid out in a way that the average consumer without legal or financial expertise could understand. Among others, it notes that the method by which the interest rate was calculated was clearly defined and described, so that the consumer could understand with full clarity the obligation she was undertaking with respect to the size of the interest rate.
(source: ana-mpa)
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