09/07/2023 – 9:00 am
The Chamber of Deputies approved Bill 2685/22, known as “PL do Desenrola”, which imposes a limit of up to 100% on charging interest on credit card revolving credit cards. With this, the question arises whether the fees imposed on those who pay only part of the invoice will be lower.
To clarify the matter, the This Is Money spoke with a finance specialist to address the main highlight of the PL, which should come into force in 90 days. Before that, the bill must be approved by the Federal Senate and undergo presidential sanction.
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In addition, within this period, financial institutions and credit card issuers may present an alternative proposal to the PL. This, in turn, will be evaluated by the National Monetary Council (CMN). If this does not occur or the proposal is not accepted, the bill approved by the National Congress is valid.
pocket impacts
For the CEO of RHVS Investimentos e Participações, Ricardo Holz, the main change brought about by the PL is in the financial strength of customers who use credit cards. In the expert’s opinion, it will be easier to fit a possible debt into the budget.
“First, it is important to emphasize that the ideal is not to resort to this resource, but to plan your expenses in advance according to your budget. But we know that urgencies occur and, in this case, the approval of the PL is very positive”, he evaluates.
Still according to Holz, the customer will find it easier to get out of this ‘quicksand’ that is the card rotation. “The rate, in any case, will remain high, but less dangerous for the consumer”, he continues.
According to a survey by the Central Bank, interest on revolving credit cards rose 8.7 percentage points in the last month of July, reaching an average of 445.7% per year.
This rate, according to the expert, is among the highest in the world and even if it drops to 100% it will remain at a high level. “The limit will be double the debt, already with charges and fines. Although high, it should represent a relief compared to the interest charged today, remembering that there are reports of financial institutions that charge 800% interest in this modality”, he comments.
default
Holz also predicts that, after implementation of the limit, consumer defaults related to the credit card bill will fall. In his assessment, it would be a way to offset the initial loss that the banks would have with the cut in the rate.
“I also don’t believe in a possible drop in the supply of credit. The system must adjust over time, even if occasional cuts may initially occur”, he explains.
The limits offered to each client may undergo minor changes, assimilated later with the balance of the financial system. The economist also states that financial institutions can make a more careful analysis of the credit offer in this initial stage of the new rate. However, this movement, along with the new rate, may bring more financial sustainability to bank portfolios.
February
In a note, the Brazilian Federation of Banks (Febraban) showed dissatisfaction with the approval of the project. For the entity, the cut in the rate may reduce the supply of credit.
“Artificial interest limits impact the supply of credit, as they carry the risk of making it unsustainable,” said, in a statement, Febraban. According to the Federation, credit cards account for 40% of all consumption in Brazil and 21% of the country’s Gross Domestic Product (GDP).
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