Febraban and Abrasel seek consensus on interest-free installments – 10/20/2023 – Panel SA

Amid discussions about the new rules for interest-free installments on credit cards, Febraban (Brazilian Federation of Banks) and Abrasel (Brazilian Association of Bars and Restaurants) took the first steps in search of a consensus.

As Valor reported, the presidents of the two entities, Isaac Sidney (Febraban) and Paulo Solmucci (Abrasel), met this Thursday (19). Former president of the Chamber of Deputies Rodrigo Maia, now president of the National Confederation of Financial Institutions, also participated.

At the meeting, confirmed by Sheetthey signaled with proposals that could please everyone involved in the credit chain — from accredited people to retailers, including payment machines, represented by Abranet (Brazilian Internet Association).

Solmucci said they managed to make a lot of progress on a solution. “Despite this, 80% of the agreement is underway,” he said. “There are still details that need to be stitched together, especially with the approval of the Central Bank.”

The next meeting should take place on November 7th.

The debates take place in the wake of the bill approved by the Senate that locks interest on revolving credit cards to the value of the debt. Today, rates reach 445% per year.

Under the project, the sectors involved have up to three months to present a self-regulation proposal, which is already being conducted by a working group led by the Central Bank.

The project, however, does not guarantee a mandate for the BC to repay the interest-free installments. Even so, directors of the authority say that it is up to the regulator to decide on this.

Although this is a possible law approved by Congress, banks will not accept a lock on rotating interest rates without compensation.

Sidney told Panel SA that the sector accepts this condition as long as there are limits on interest-free installments via credit card.

The idea discussed this week at the BC was to establish a ceiling of installments (12) for interest-free purchases on the card.

Sidney also stated that this idea is a starting point for negotiations and was willing to move forward in the next meetings. He did not say, however, whether he agrees with the 12-fold ceiling.

Retail representatives say that there has already been a signal from banks to reduce the installments to a maximum of six installments. But there would be provision for nine installments.

With Diego Felix

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