Vehicle Financing Review Action
As a general rule, the objective is to reduce the value of the installments established in the contract or even to reduce the outstanding balance. Best Car Financing
This type of action has gained a lot of popularity in recent years, so much so that financial institutions promoted strong lobbying in Congress and achieved significant changes in the Search and Seizure Law.
Important changes have also taken place in the jurisprudence scope, and this article provides some information on the subject.
1 – WHAT DOES REVISIONAL ACTION OR CONTRACT REVIEW MEAN?
Popularly known as action to reduce abusive interest rates, the lawsuit–review action, which aims to reduce the provision of vehicle financing has gained a lot of space in recent years.
Unfortunately, due to illegal practices committed by legal professionals, the review action began to be restricted by the Judiciary.
Not without reason, as several abuses were committed.
There are even accusations against people who tried to transform this judicial measure into commerce, announcing advantages and offering facilities that often do not match reality.
In addition, for the consumer to really succeed in a lawsuit reviewing a financing contract by the courts, he needs much more than just claiming abusive interest charges or even the practice of anatocism on the part of finance companies.
This is because for some years the legal thesis related to capitalization of interest – abusive interest, has not prospered in the courts.
The legal orientation changed after the decision of the STJ that understood the possibility of this practice, provided that it was expressly agreed:
” The capitalization of interest with a frequency lower than the annual period is allowed in contracts entered into with institutions that are part of the National Financial System from 3/31/2000 (MP 1.963-17/00, reissued as MP 2.170-36/01), provided that expressly agreed ” ( REsp 1,112,879, REsp 1,112,880 and REsp 973,827 ).
2 – THEN CAN I NO LONGER JOIN A REVISIONAL ACTION TO REDUCE THE INTEREST ON MY FINANCING INJUSTICE?
The mere allegation of the occurrence of abusive interest no longer finds room in the courts.
The free private initiative, allied to the consumer’s power of choice, weakened the main foundation used in the revisional action – high-interest rates.
Therefore, it is necessary to prove the practice of excess in the specific case.
This is done by proving abuse in relation to the average interest rate practiced by the financial market.
However, this situation is extremely difficult to occur, since the finance companies charge an average interest rate very close to each other, which makes it impossible to prove that the rate is abusive.
This does not mean that the consumer has lost the right to revise contractual clauses.
There is still the possibility of reducing the portion of your financing.
This is because it is not only the practice of capitalization of interest that can be discussed in court through the review action.
3 – IN ADDITION TO ABUSIVE INTEREST, WHAT DO YOU CLAIM IN JUSTICE IN THE REVISIONAL ACTION?
There are other devices used by banks that are also prohibited by law, such as the inclusion of ancillary expenses in the contract (REGISTRATION / EVALUATION RATE / THIRD PARTY SERVICES / INSURANCE).
Some of these rates can be considered abusive, a situation that assures the consumer the right to review the contractual clauses;
Removing these charges from the total financed amount results in debt reduction.
It is not an easy task and the consumer must be aware.
The help of a professional with considerable experience in the area, including notions of financial mathematics, is necessary to demonstrate, in a very clear way, the abusive practice inserted in the contract, its impact on the monthly installment, and the correct amount to be charged with the exclusion of undue amounts.
The review action requires robust and well-demonstrated evidence, under penalty of being considered a mere legal adventure.
So stay tuned, don’t fall into the banks’ traps, or be lulled into fanciful promises.
4 – REVISIONAL ACTION. CONCLUSIONS
It is possible to discuss the vehicle financing contract in court – revisional action, but the help of someone with technical knowledge on the subject is necessary.
Look for a professional you can trust or contact us.
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