Raising interest rates retroactively is illegal, says MP

(File photo: Ameer Khalifeh/Jordan News)
ِAMMAN — Banks violate the law and legal interpretations by retroactively raising interest rates on loans, the former head of the Bar Association, MP Saleh Al-Armouti, said on Tuesday. Jo24 reported. اضافة اعلان

Banks, he added, are “preying on citizens”.

He criticized the Central Bank for its silence on such practices and its failure to circulate judicial decisions in this regard to banks.

“Even if the contracts signed between the bank and the borrower stipulate the bank’s right to raise interest rates, this condition is not binding,” he added. “Especially if the conditions were unfair, the court can invalidate them,” he said.

Armouti also stressed that contracts must be free of “conditions of compliance.

There are judicial decisions preventing citizens from being charged any excess costs, he added that the Central Bank must circulate these decisions.

What most banks are doing is deemed an encroachment on citizens and is considered a violation of the law and the Constitution.

The Constitution “stipulates that the religion of the state is Islam, which prohibits usury,” he added.

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