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."

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