Lindbergh and Alencar Santana’s request criticizes the BC president’s speech about restricting interest-free installment purchases on credit
The federal deputies Lindbergh Farias (PT-RJ) and Alencar Santana (PT-SP) filed on Thursday (9.Nov.2023) a request requesting the approval of a motion for repudiation by the Chamber of Deputies to statements by the president of the B.C. (Central Bank), Campos Neto, on restricting interest-free installment purchases on credit cards.
According to congressmen, Campos Neto acted “in a way contrary to the spirit” of law 14,690 of 2023, which established Desenrola – a debt renegotiation program for individuals. The president Luiz Inácio Lula da Silva (PT) sanctioned the text in October.
In August, Campos Neto signaled that revolving credit should end. According to him, the measure would help combat default. “It’s not prohibiting interest-free installments, it’s simply trying to keep them in a disciplined way”said in a session in the Senate.
However, in an interview with Power360, the president of the Central Bank denied having proposed ending interest-free installments. He stated that the intention is to discourage the credit model.
“The idea that was being discussed is how can I do so that this does not continue to grow unchecked. In other words, there is a marginal disincentive to make long installments. On the other hand, there is a lot of card issuance”he declared.
At the time, card machine companies and the commercial sector challenged the Central Bank because of the possibility of ending interest-free installments.
A Abranet (Brazilian Internet Association), which brings together more than 70 million customers of financial services and card machine companies, stated that the limitation of the installment purchase model “will drastically reduce consumption and impact all retail”.
Lindbergh and Santana said in their justification for the motion to dismiss that “there is no evidence” that interest-free installment purchases on credit cards are “determining causes” of family default. Here’s the complete of the document (PDF – 456 kB).
“On the contrary, […] Interest-free installments on credit cards are a beneficial measure for consumers, who are able to finance their purchases without being subject to abusive interest rates charged by banks”they stated.
O Power360 contacted the Central Bank this Saturday (11.Nov.2023) by email to obtain the official position on the request for a motion to repudiate Campos Neto’s speeches presented in the Chamber. Until the publication of this text, no response had been received. When and if you wish to express your position, this post will be amended to include the bank’s statement regarding the case.
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