The relationship with the bank: when interest becomes illegitimate

Many entrepreneurs and private citizens find themselves managing complex relationships with credit institutions, often without being fully aware of the conditions applied to current accounts, mortgages, or loans. The feeling of paying excessive interest or seeing one's debt grow abnormally is not uncommon. In many cases, this perception corresponds to illegitimate practices such as compound interest and bank usury, phenomena that can significantly erode assets. Understanding these mechanisms is the first step to protecting one's rights and recovering unduly paid sums. As an expert lawyer in bank compensation in Milan, lawyer Marco Bianucci assists clients in analyzing banking relationships to highlight and contest any form of illegality.

What are compound interest and bank usury

Although often confused, compound interest and usury are two distinct offenses with equally serious consequences. Bank compound interest, also known as compound capitalization of interest, is the practice whereby the passive interest accrued on a debt is added to the initial capital, in turn generating new interest. This mechanism, if not regulated by precise conditions, generates exponential debt growth. Italian law has placed strict limits on this practice, making it illegitimate in most cases on current accounts. It is essential to analyze contractual and accounting documentation to verify whether the bank has applied interest on interest in violation of current regulations.

Bank usury, on the other hand, occurs when a credit institution applies interest rates or fees that exceed the maximum threshold set quarterly by the Bank of Italy (the so-called 'threshold rate'). The calculation to determine the exceeding of this threshold does not concern only the nominal interest rate (TAN), but must include every cost related to the granting of credit, such as commissions, expenses, and mandatory insurance. If the Global Effective Annual Rate (TAEG) exceeds the threshold rate at the time of signing the contract, it is referred to as original usury. The legal consequence is the nullity of the clause and the client's right not to pay any interest, but only to return the principal.

The Bianucci Law Firm's approach to banking litigation

Facing litigation against a credit institution requires a meticulous approach, combining legal and financial expertise. The approach of lawyer Marco Bianucci, a lawyer with consolidated experience in compound interest and bank usury in Milan, is structured in precise phases to ensure maximum transparency and concreteness for the client. The first step consists of a preliminary and in-depth analysis of all contractual documentation, such as current account contracts, mortgages, leasing, and loans, along with the relevant account statements. Subsequently, should illegality emerge, specialized technical consultants are engaged to prepare an econometric expert report. This document is crucial because it recalculates the exact balance between the client and the bank, clearing the relationship of any illegitimate charges and precisely quantifying the client's credit.

Frequently Asked Questions

How can I tell if I am a victim of compound interest or usury?

Individually identifying these practices is very difficult. Warning signs can be very high passive interest, the presence of unclear commissions such as the 'commission for maximum overdraft' or a debt that grows despite payments. The only way to be certain is to submit the complete banking documentation to a technical and legal analysis by expert professionals, who can verify the compliance of the applied rates and conditions with the regulations.

How much time do I have to claim compensation from the bank?

The right to the refund of unduly paid sums is, as a rule, subject to a ten-year statute of limitations. However, it is essential to correctly establish from which moment this term begins to run. For current account operations, consolidated case law has established that the statute of limitations begins to run from the date of account closure, not from the date of each individual transaction. It is therefore possible to contest charges made even many years earlier, provided that the account is still open or has been closed for less than ten years.

What documents are needed for an initial analysis?

For an effective preliminary assessment, it is essential to gather all documentation relating to the banking relationship in question. Generally, the fundamental documents include: the original contract for opening the current account or for the mortgage/loan agreement, the complete quarterly sequential account statements for the entire duration of the relationship, and the periodic summary documents sent by the bank. The more complete the documentation, the more precise the analysis will be.

Contact an Expert Lawyer for Your Compensation in Milan

Obtaining justice against a credit institution requires expertise, determination, and a clear legal strategy. Entrusting yourself to a professional is essential to balance the disparity of power and assert your rights. If you suspect you have paid compound interest, usurious interest, or other undue sums, contact the Bianucci Law Firm for an assessment of your case. Lawyer Marco Bianucci, at the Milan office in Via Alberto da Giussano 26, will provide a transparent analysis of your position and assist you in the process of obtaining fair compensation.