A recent Supreme Court decision determines that the Usury Act does not apply to interest charged for the delay in returning borrowed money. The interest serves the function of a conventional sanction or penalty, and is not therefore considered abusive or usurious for the purposes of the legislation.
Source: Supreme Court Decision 869/2001, of 2nd October, 2001, Repertorio de jurisprudencia Aranzadi, 2001\7141. Mullerat Email: jjforner@eco.ub.es