Court Suspends Increase in Loan Fees

While preparing a definitive ruling, a Costa Rica tribunal court ordered a mortgage lender to reduce the monthly fee paid by a debtor to its initial amount.

Tuesday, November 13, 2012

In Costa Rica, interest rate growth has led to significant increases in the fees paid by borrowers to banks and finance companies.

Now, faced with a class action, a Court of Appeals Dispute Tribunal has granted an injunction to one of the debtors, ordering that " the monthly payment for a home loan, from 1. ° December 2012, be kept at the same amount as when the loan was acquired in 2007. "

The claim is based on the existence of an alleged abusive clause in the loan agreement, which states that "the interest rate for the loan increases in steps, and also is linked to the base rate."

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

Costa Rica: Credit for Housing Up 10%

May 2016

Competition, interbank interest rates and a stable exchange rate are the reasons for the growth of the housing loan portfolio in the first quarter of 2016.

An article on Elfinancierocr.com reports that "... Housing credit has been growing at safe rate since the start of 2016 and this market is expected to remain this way for the rest of the year ...

Costa Rica: Bank Lending Slows

August 2014

The scare liquidity of colones explains the lower growth of loans in this currency, while credit growth in dollars continues to lose strength.

Added to the diminished liquidity in colones putting downward pressure on credit growth in that currency, is uncertainty at enterprise-level over recent changes in the exchange rate and lower credit demand for real estate projects, power generation and tourism, as explained by bankers to Nacion.com.

Builders Wary of Interest Rate Hike

September 2012

In light of rumors over possible changes to mortgage conditions, Nicaraguan real estate developers are asking the country's banks not to go through with them because they would affect the sector’s growth.

Alberto Atha, president of the Chamber of Builders of Nicaragua (Cadur), said that a rumor is spreading that some banks will increase interest rates on mortgage loans by between one and two percentage points and the premium could be increased by 15 %. "We are convinced that such a move would affect and stagnate the growth process that the industry is experiencing." ... although the changes are not yet official, they are holding talks with banks asking for these measures not to be applied in the immediate future. "

Increased Availability for Home Loans in Costa Rica

March 2011

Despite contraction in the construction sector, banks and other lenders are increasing their offers.

The bank´s credit portfolio is the largest offered over the last three years as reported by the Costa Rican Banking Association.

"In Expoconstrucción, which begins next Sunday at Pedregal (San Antonio de Belén), banks will try to hook new customers with fixed rate programs, remission of fees and payment terms of up to 30 years" informed Nacion.com, “Nine financial institutions will be present at the fair ...".

ok