Judicial Framework for Raising Interest Rates on Financial Consumers in Jordanian Laws

Abstract

This research clarified the legal regulation of raising the interest rate on the financial consumer. The consumer is the weaker party in the bank loan contract, so the financial consumer or customer has the first priority in taking care of his interests, especially in the field of raising the interest rate and the legal basis for this increase in the interest rate during the loan repayment period. Then, the position of the Jordanian judiciary on raising the interest rate was revised by reviewing the decisions of the Jordanian Court of Cassation. The research concluded with a set of results and recommendations, the most important of which is the need for the Jordanian legislator to address, through a clear and explicit text, the extent of the bank’s right to raise the interest rate or not through the Central Bank of Jordan.