Penalty interest for delay in mortgage or loan payments
Do not pay delay/penalty interest more than 2% above the agreed interest rate of the loan or mortgage
If the penalty interest for payment delay of your loan (personal or mortgage) is more than 2% above the agreed interest rate of your loan or mortgage, the judge must maintain the rest of the clauses of the contract and cancel the clause relating to delay/penalty interest. Nothing can be charged to the consumer if the rate is more than 2% above the agreed loan rate.
Why 2 percentage points?
The Supreme Court in Spain has considered 2% as the maximum which will not imply a disproportionately high penalty due to the delay in compliance with obligations of the consumer (applying Consumer Act, article 85.6 and article 3 and annex 1.e of the European Directive 93/13/CEE).
Why the Judge cannot set a substitute delay interest?
Because the main interest of legal punishment for abusive clauses is to discourage companies from using them. If the judge can moderate the same, that effect would not occur.
Therefore, if the bank is executing your loan — whether it is a personal or a mortgage–, check if the interest of delay is higher that 2% above the interest of the loan and oppose to the payment of this.