Change in revolving credit applies to debt acquired from this Monday (2nd January); government hopes to reduce defaults
The new rule for credit card revolving will come into effect this Tuesday (January 2, 2024). From now on, revolving interest will be limited to an amount equivalent to 100% of the debt. The change was approved by the CMN (National Monetary Council) on December 21st. Here's the complete resolution (PDF – 125 kB).
For example, if the debt is R$100, the amount adjusted with fees cannot exceed R$200. The consumer enters the revolving system when he pays only part of the card bill and the outstanding balance is left for the following month. This difference becomes a short-term personal loan, called revolving credit.
The collection of IOF (Financial Operations Tax) was left out of this calculation. NNo ceiling was established for interest or credit card installments.
The limitation, according to the government, will prevent the value from snowballing. In October, the average card revolving rate was 431.6% per year. The interest paid in installments on the card he was by 195.6% per year. In practice, limiting the amount of debt will reduce the revenue of financial institutions.
The government hopes that defaults will decrease with the measure. The objective of the measure is to make Brazilians get into debt at lower levels and, consequently, be able to pay off their debts.
Payment of interest-free credit cards continues in the conventional way. The large banks defended at least a limit on the number of installments without tax rates. According to them, one of the reasons for default is the high number of installments.
The Central Bank considered putting the proposal on the table, at least to limit the number of installments. Entities and the federal government spoke out against the possibility.
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