The determination that comes into effect this Wednesday (3) is provided for in the Desenrola Brasil Program law (14.690/2023), approved in October in the Senate. The 100% interest ceiling on revolving credit cards follows the United Kingdom model and was a definition adopted by the new legislation, which also authorizes debt portability.
03/01/2024, 18h21 – UPDATED ON 01/03/2024, 6:21 pm
Audio duration: 02:20
CREDIT CARD INTEREST FOR THOSE WHO DO NOT PAY THE TOTAL INVOICE IS NOW LIMITED TO 100% OF THE DEBT. THE MEASURE FOLLOWS THE UNITED KINGDOM MODEL AND WAS DEFINED AFTER LACK OF CONSENSUS BETWEEN THE GOVERNMENT, CENTRAL BANK AND FINANCIAL INSTITUTIONS. REPORTER JANAÍNA ARAÚJO. The 100% limit on credit card revolving interest is now in effect. The measure is part of the Desenrola Brasil Program law sanctioned at the beginning of October last year, which determined 90 days for a new interest charging model agreed between the government, Central Bank and financial institutions. According to the legislation, if the negotiations did not reach a consensus, the model in force in the United Kingdom would apply, which establishes interest up to a ceiling of 100% of the debt, which will no longer be able to rise after the value doubles. When voting on the law in the Senate, the rapporteur, senator Rodrigo Cunha, from Podemos de Alagoas, pointed out the urgency of changing the interest charged on credit cards by giving the example of a debt of one thousand reais. Rodrigo – That it no longer reaches 450% of an average annual credit card debt today. A debt today of R$1,000 that the citizen incurs in one month, the following month he is refinancing through the revolving loan, after a year this debt of R$1,000 is already at R$5,000; in two years, this debt of R$1 thousand will already be R$25 thousand. So, look at the importance of putting an end to it. Now, with interest limited to 100%, for the same debt of one thousand reais on the revolving schedule, the charges cannot exceed that same amount and the debtor will not be able to pay more than two thousand reais, regardless of the term. Rodrigo Cunha also highlighted another measure provided for in the Desenrola Brasil Program Law. Rodrigo – This instrument will create a new field of dispute between banks and financial companies. The portability of revolving credit. Yes, there will be a big dispute now so that those people who were previously held hostage by their credit card and would have to accept that proposal to refinance their card, now have the freedom to look for some other alternative and thus rekindling a direct dispute over these credits. The new law provides that consumers have the right to portability of the outstanding balance of their credit card bill and other related debts, even those already paid in installments, to any financial institution authorized to operate by the Central Bank. From Rádio Senado, Janaína Araújo.
The post first appeared on www12.senado.leg.br