In the meantime, default fees and interest must not exceed 1.5 times the current bank rates, i.e. 31.92%, effective annually for the consumer and the ordinary credit modality. In all cases, it is legal to claim interest, whether or not there is a contract or security such as a bill of exchange or a promissory note; Whenever there is a loan or financing, interest may be charged if it is the will of the parties. He participated in the illegality and was found guilty of lending $2 million to Flor María Chavarria with usurious interest of 10% per month. If the person to whom the money is lent is the one who offers the amount of interest that they are willing to give, and that percentage is higher than the usurious interest, would you still have legal problems or if it is stipulated in the contract, would everything be fine? José, if you are looking for a return on your savings, you should look for investment products. We advise on loans that are private equity, you can not invest there. There are projects and companies where you can invest your money and you can do it 100% online. Here we leave you some investment opportunities in case you are interested in analyzing it. Note that the rule penalizes both collecting and receiving higher interest than statutory interest, so the same applies if you charge more than the legal interest or accept the other`s offer to pay you more than allowed. Interest is divided into remuneration and moratoriums, which occur at different stages of the operation financed. If you are about to apply for a loan and want to know if the interest rate you want to apply is legal, you need to know what the usurious interest rate is in Colombia. In such a situation, the interest charged to Sandra is above the legal limit.
Is Santiago obliged to reduce the interest charged? Maybe. It depends on the time that has elapsed. And chances are they`ll charge you legal fees as well. Ask them to make the comparison, which shows how much interest and costs will be incurred and that the money I deliver has been credited. This aggravating circumstance would increase penalties for lenders by up to 15 years in prison. As well as a fine of up to 1500 legal minimum wages. In the second case, we have to charge the interest rate they charge us. This is done by dividing the value of interest by the loan amount and multiplying it by 100. As long as our loan is with formal financial institutions, we can be sure that the interest we pay does not exceed the usurious interest. However, with informal credits (drop by drop, street credits, paychecks), everything changes.
When a loan is taken out with a bank and fixed rates are chosen, these are determined regardless of whether the usurious interest rate increases or decreases, which does not mean that it is important that the interest rate is within the legal limits at the time of the conclusion of the obligation. Even in many cases, the profit-making interest is the legal maximum, and in such a case, there can be no interest for delay, because there is no legal leeway to impose another, more costly penalty, which becomes unfair because there is no benefit for fulfillment or consequences for the violation, since in each case the maximum legal amount is paid. These are the main tools for those who are forced to pay interest that exceeds usurious interest. BCI Empresas SAS charged interest in excess of 17 times the statutory interest allowed. For example, it may be agreed that the for-profit interest is equal to the current bank interest, and that the moratorium is the legal limit, or another share may be agreed according to the will of the parties. What procedure can you use if I want to sue for excessive interest? Simply put, the usurious interest rate is the maximum ceiling of the interest rate that can be charged in Colombia. Always speak in exchange for borrowing money. The maximum legal interest rates for loans in Colombia are limited by the usurious interest rate.
It is published monthly by the Financial Supervisory Authority. The Colombian Penal Code provides for the offence of usury, which consists of receiving interest in excess of the legal limit. If a company owes me money for 8 months that I paid for a good that I did not receive, as a merchant, and although I have made the claim that the company does not want to pay me, I have the right to charge interest from the day I made the payment until the day on which the supplier pays me to bill? Or to ask for it in the trial? Usury is illegal. This means that if a financial institution charges you an amount higher than the reference value set by the authorities, you must declare it to Superfinanciera. Check monthly how high the wear rate is. This will let you know when it`s a good idea to manage your debt to improve your terms. Keep in mind that credit cards charge interest rates very close to usurious interest. The crime of usury in the Colombian penal code is punishable by fines and even imprisonment. Anyone who purchases a cheque, salary, salary or social benefit under the conditions provided for in this article shall be punished by imprisonment for a term of 48 to 126 months and a fine of 133.33 to 600 of the applicable legal minimum wage. In extreme cases, it was a one-day loan, where excessive interest rates could exceed 250 times the maximum legal interest allowed. Through the Superintendence of Industry and Commerce (SIC), consumers can file complaints and prosecutions against lenders who commit the crime of usury in Colombia. This is to ensure that usurious interest is no longer charged.
Usury in criminal law is currently punishable by up to 10 years in prison. On the other hand, fines reach up to 600 legal monthly minimum wages. It is clear that interest for late payment is different from interest against payment, and it is clear that there is a limit to the interest that can be charged, but this limit is general and not specific to one type of interest or another, so that interest against payment is assimilated to the moratorium. If I take out a mortgage of 5 million pesos, I have already cancelled 14 million pesos and the creditor claims that I still owe him 8 million, is it legal? The authorities are trying to amend the usury law to include the aggravating circumstance of “usury by force” in cases where it is “forced, threatened and used in any form to obtain payment of the bond or the interest it generates”. I have doubts about the output of data from a letter if, for example, it is processed on September 15, 2020 for 10 million at 1%, but with a due date of September 15, 2021, interest will run from 2020 or the due date? Interest is also charged in case of breach of an obligation or contract that causes economic harm to the party, in which case civil law takes into account so-called legal interests, which is a different issue from that dealt with in this article. What we recommend is not to fall into the hands of these people. And be sure to seek advice from lawyers who know the crime of usury in the Colombian Penal Code. If this legal limit subsequently increases or decreases, this does not affect a contract already signed by the parties; This serves as legal and contractual certainty. If you see the wear rate increase, the purchases you make with your credit card will pay more interest the following month. If the interest rate drops, you may want to consider buybacks or portfolio purchases, or even pending purchases. The law sets a limit on the interest that can be collected, and if this limit is violated, two consequences are imposed: criminal and commercial. For Alexander Ríos, financial expert and founder of Inverxia, long-term borrowing at high interest rates should be avoided when interest rates rise.
“The recommendation is that if you use the credit card, you should check two things: first, that it offers points, miles or other benefits, because it will be a discount later. And secondly, finance in one or two installments, where the interest charge is not a large part of the purchase payment,” Rio said. Hello, I have a credit from Crediservice and monthly they charge me a rate of 23.86 months of arrears, is it legal? The definition of usury is a term used for centuries for all interests that are above the established maximum. Let`s say Santiago borrowed money from Sandra at an interest rate of 25% per annum on January 5, and then lowered the maximum interest limit to 20% per annum in April. “By credit card, financing should be done in one or two installments, the burden of interest not constituting a large part of the payment of purchases.”