ANATOCISM: CONCEPT AND EXAMPLES - DUDAS - 2025

The anatocismo consists of adding non interest paid and losers to the capital of a loan, so that these interests in turn produce new interests. In short, this refers to "interests of interests."

The delay in the payment of a loan or its non-payment always has consequences, which is having to pay delinquent interest. Therefore, the interests that are generated by these added interests are called anatocism.

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When you request a loan you have to be aware of the derivations that may come from it. Anatocism refers to the fact of the collection of interest on the default interest that was caused by not having paid a loan correctly.

It is important to be able to distinguish between the original interest on the loan and the default interest that is subsequently stipulated under the contract when a partial or all of the duty to pay the interest and the repayment of the loan amount is not fulfilled.

Concept

When applying for loans, the financial institution requires monthly installments to be paid to you. On the one hand, a portion of the amount to be repaid is paid for the capital borrowed. On the other, the interest generated by the period of time that has elapsed is paid.

When an individual does not pay the installment corresponding to a certain period, this amount that is left unpaid must be added to the capital that has been loaned, thus becoming part of the total amount to be repaid. The new interest will have to be calculated on this new total amount.

Therefore, anatocism resides in that the individual who does not pay part or all of the fee that concerned him for a certain period will add the amount that he stopped paying to the borrowed capital, therefore becoming part of the amount to which the new interest will be calculated.

Examples of anatocism

Example 1

If a debt of $ 10,000 accrues simple interest in successive monthly periods at 5% interest, it would have to increase in five months to the amount of $ 12,500 (10,000 * 5% * 5 months).

If interest accrued with anatocism, that same debt of $ 10,000 would amount to the amount of $ 12,762.80, an amount that would increase month by month in a greater amount, reaching $ 15,510 after four months, compared to $ 14,500 if there was no anatocism.

Example 2

Suppose Juan takes a loan for $ 500,000, with a monthly interest rate of 5% ($ 25,000). In the case of not paying it when the month ends, Juan will owe $ 525,000 of capital ($ 500,000 + $ 25,000).

Therefore, if it has not been paid, a new monthly interest will be calculated on this new capital, with the same rate of 5%, generating an interest of $ 26,250 ($ 525,000 * 5%) for the following month.

If this amount is not paid, then a new capital of $ 551,250 ($ 525,000 + $ 26,250) will be owed and this will continue to increase successively.

Anatocism in Colombia

The Colombian Civil Code in its article 2235 provides that it is forbidden to arrange interests over interests.

On the other hand, the Commercial Code in its article 886 regulates that the interests that are pending payment will not generate interest, but from the date that the creditor makes a legal claim, or by an agreement after expiration.

This will take effect only in the case of interest owed at least one year in advance. In other words, anatocism is totally prohibited in civil business, which would be in relationships between non-merchants.

On the other hand, anatocism is allowed only in the following cases in business relationships:

- After initiating the judicial collection action from the date the claim is filed.

- For an agreement after the payment is due.

Anatocism in Mexico

The legality of anatocism is given when a contract is made where it is clearly established that the interests will be capitalized.

This can be both a debt and an investment contract, in such a way that the formula for capitalization of interest is indicated with the approval of the signers.

Anatocism arises when the creditor uses it unilaterally and executes the capitalization of the accrued interest plus the default interest, according to the reasoning of the Supreme Court of Justice.

However, there are clear examples that distort the meaning of the following SCJ jurisprudence:

Anatocism and usury must be prohibited by law as long as parameters or limits are not established that allow credit institutions and individuals to regulate their wisdom in the use of interest.

Anatocism in Argentina

In the Argentine Civil and Commercial Code of 2017, the text on anatocism is found in article 770, which indicates that interest should not be paid on interest, except that:

- There is a clause to authorize interest to accrue to capital in a period of no less than six months.

- Payment is legally required, applying accumulation from the date the claim is notified.

- The payment is judicially canceled, producing capitalization as soon as the judge orders to pay the resulting amount and the debtor does not pay.

The innovation introduced in the new Code is the one incorporated in the exception corresponding to the judicial demand for payment.

This would not be an exception figure for certain areas, such as insurance, where the handling of claims for work-related accidents or traffic accidents frequently becomes judicial.

Anatocism in Spain

In article 1109 of the Spanish Civil Code it is indicated that the interests due acquire the character of legal interest from the moment they are sued in court, even though the contract has not mentioned anything about this aspect.

However, article 317 of the Commercial Code indicates that the collection of interest on interest is prohibited.

Although this is the case, if the parties have decided that these interests can be capitalized, it must be mentioned in the signed contract regarding the loan.

In the civil jurisdiction, anatocism is pointed out directly and in the commercial one indirectly. Three basic points can be deducted:

- Anatocism is understood from a double perspective, commercial and civil.

- In the commercial jurisdiction, the interests due do not generate any additional interest, unless it is agreed between the parties.

- In the civil it applies without being necessary that it has been agreed. That is, interest is charged on interest, but a prior judicial claim is necessary for this.

References

1. Legal Concepts (2020). Anatocism. Taken from: legal concepts.com.
2. David Méndez (2019). Definition of Anatocism. Simple Economy. Taken from: economiasimple.net
3. Wikipedia (2020). Anatocism. Taken from: es.wikipedia.org.
4. Fernando Calderón Olaya (2017). Capitalization of interest, anatocism or compound interest. Manage. Taken from: gerencie.com.
5. All Risk (2017). The "anatocism" in the new Civil and Commercial Code. Taken from: todoriesgo.com.ar.
6. Raúl Sabido (2018). Anatocism and INFONAVIT. Juárez to Diario. Taken from: juarezadiario.com.