Court annuls sham car sale that concealed an abusive loan, reinforcing consumer protection against predatory financingExecutive summary: The Juzgado de A Coruña declared a car sale contract null and void after determining it concealed an abusive loan, and mandated the company to return the vehicle and repay the undue amounts. The ruling underscores judicial intolerance of disguised lending practices that circumvent consumer‑credit protections, potentially deterring similar schemes and strengthening borrower safeguards. The A Coruña court, the unnamed company that executed the sham sale, and the consumer who brought the claim. The company may appeal the decision; regulators and consumer groups could push for tighter disclosure rules on loan‑sale hybrids in the automotive sector.A judge in A Coruña ruled that a purported vehicle purchase was actually a façade for an usurious loan, ordering the company to return the car and repay the improperly collected sums. The decision highlights how courts are scrutinising arrangements that disguise lending as sales to evade interest‑rate caps. While the case concerns a single transaction, it may signal broader judicial willingness to crack down on similar schemes in the automotive financing market.Connected developmentsNoleggio, cresce del 6,7% anche grazie alla spinta delle case cinesiOpen the full case file on Beyond →
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