High Court Lawyer Rome Banking Law Corporate Law Compound Interest Usury
High Court Lawyer Rome Banking Law Corporate Law Compound Interest Usury
Are you looking for an experienced lawyer in Rome? Problems of Banking Compound Interest? Are you looking for a lawyer in Rome experienced in this field?
Those who seem to be the giants of the economy, who operate in a regular and adverse manner which it is not possible to claim anything, actually are public limited companies that most often operate in banking operations in an abnormal way. The same, in fact, abuse their position as a strong contractor to the detriment of the consumer or entrepreneur. They operate applying fees and expenses that are not due. The latter, added to the interest, sometimes even exceed the threshold rate. This happens not only with mortgage contracts, in financing and revolving cards, but also in current accounts.
Del Monte law firm, availing itself of experts in the field, will analyze the relationships occurring and act to allow the client to recover what he would not have to pay.
Examples of abnormal behavior implemented by banks:
Application of interests exceeding the legal threshold: to be considered taking into account all the charges related to the management and/or disbursement of the credit (CMS, CIV, quarterly management expenses, interest on arrears and mortgages also of the early extinction penalty, insurance, investigative expenses);
Overdraft fee and fast credit processing fee: they are not provided for by law but the banks continue, however, to apply them by issuing new and different terminologies to circumvent the normative;
Sudden and illegitimate revocation of the overdraft: The banks very often revoke suddenly the granted overdraft without prior notification, imposing to the account holder the immediate return of the sum and generating an objective impossibility to return it. So, the same is seen unduly reported to the CRIF, with prejudice to both the commercial activity in existence, and for the continuation of the same, and still for its future and different activities;
Usurious Interests ex L.108/96 in mortgage contracts: sometimes people who take sums to mortgage believe that the loan contract is in conformity with what the law dictates only because the same is signed before a notary and the counterpart is a bank. Very often it is not like that because an interest rate, which apparently seems less than the legal rate published quarterly in the Gazzetta Ufficiale Della Repubblica, is actually higher than the rate established by law, beyond which the interests are considered usurers. On this point, the legislative provision is clear: “if usurious interests are agreed, the clause is null and no interest is due” art. 1815, 2nd paragraphcc. This, in simple words, means that if interests exceeding the legal threshold are agreed and / or applied, the borrower will have the right, not to get back the sums paid in excess, but not to pay more interest and only the principal amount, or if already paid, to repay all the interests;
Indeterminacy of the contractual rate: another anomaly that is found in the mortgage contracts is the indeterminacy of the interest rate, which is very often anchored to the parameters unstable and not easy to read, so much to invalidate the entire contract of an unacceptable indeterminacy in the legal system and therefore sanctioned under art. 117 TUB, with an absolute nullity of the contract and the agreements contained therein;
Failure to return the unenjoyed part of the insurance in the event of early redemption of the mortgage: did you know that in the event of early redemption of the mortgage or financing, you are entitled to return the part of insurance related to it paid in advance at the time of the stipulation in the part in which you have not benefited by virtue of the premature extinction? The banks do not return this sum, because very often the borrowers are unaware of it. The banks, taking advantage of this lack of knowledge, hold sums not due.
Compound interest and quarterly application of interest in bank account contracts: these are additional costs that must have been expressly accepted by the account holder to be validly accounted for;
Compound interest in the banking language is the production of interests (capitalization) from other interests rendered productive even if expired or unpaid, on a given capital.
It is a common practice, which often leads to an illegal interest calculation and tends to make a loan or mortgage extremely expensive. The prohibition of compound interest (banking and non-banking) has always existed in the Italian legal system under article 1283 of the civil Code. Nevertheless, the Banks acted legitimately when they applied the methodology for calculating the interests described above, because this behavior had been widely endorsed by the jurisprudence, at least until the whole process of interpretative revision of the rules concerning compound interest began, which led after many years to the famous sentence of the Court of Cassation of 4 November 2004. 21095.
Before this ruling, however, there was Article 25 of the Legislative Decree No. 342/1999, paragraph 2, which, by introducing a new paragraph to art. 120 of Legislative Decree n. 385/1993 (Single bank text), provided for the possibility of establishing, through a special resolution of the ICRC (Inter-ministerial Committee for Credit and Savings), the modalities and criteria for the production of interest on interest accruing in the financial year ff the banking activity, provided that the same periodicity is respected in the counting of both the passive and the active balances. The official seal on the aforementioned new course on the calculation of bank interest was then affixed by the judgment of the ICRC issued on 9 February 2000, which definitively fixed the time of the date of the obligation, to be borne by the banks, to recognise To the depositionists equal periodicity in the liquidation of interest.
In Decree no. 342/1999 at the same time, with a transitional provision, the legislator established a real rectification for the past, without prejudice to the quarterly capitalization clauses contained in the contracts concluded before the entry into force of the new regulations. However, the transitional rule was declared unlawful for breach of article 77 of the Constitution by the Constitutional Court by judgment of 17 October 2000 n. 425. The revision process at the moment can be considered concluded with the aforementioned ruling of 4 November 2004 n. 21095, of the United sections of the Court of Cassation, in which it is essentially affirmed the unlawful, even for the past, of bank charges for compound interest.
In essence, the Court affirms that the quarterly capitalization clauses of debtor interests prior to 1999 have never been responsive to a regulatory use but rather a negotiation and therefore in contrast with the principle contained in art. 1283. The normative use consists, in fact, as reported in the sentence, in the “general, uniform, constant and public repetition of a certain behavior, accompanied by the conviction that it is a juridically obligatory behavior, as it conforms to a norm that already exists or that is believes it should be part of the legal system “. In other words, the compound interest clauses were accepted not because the users were convinced of their compliance with the principles of the legal system, but rather because they were obliged to accept them in order to access the banking services. This psychological attitude is therefore very far from the spontaneous acceptance that instead distinguishes the custom as a juridical institution.
Del Monte law firm in Rome deals extensively and professionally with the problems of bank compound interest, erroneous calculation of interest on loans, financing and mortgages. For needs concerning compound interests, problems with banks and financial, entrusted to the study of Federica Del Monte in Rome.
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