Febraban says that limiting interest on revolving credit can make cards unfeasible and reduce credit supply

[ad_1]

Federation that represents the banks manifested itself after the Chamber of Deputies approved a bill that creates a ceiling for charges in the modality. Text now goes to the Senate. With interest rates on the rise, consumer use of credit cards declines TV Diário/Reproduction The Brazilian Federation of Banks (Febraban) criticized this Tuesday (5th) the creation of a ceiling for revolving interest and stated that the limitation of fees can make credit cards unfeasible. The demonstration came after the Chamber of Deputies approved a bill on the subject. “In the case of credit cards, a product that accounts for 40% of all consumption in Brazil and 21% of GDP, ceilings on revolving interest rates may make a relevant portion of credit cards economically unfeasible, affecting the availability of credit in the economy”, said, in a note, the entity. By establishing a ceiling for revolving charges, the text approved by deputies this Tuesday provides for a period of 90 days for credit card issuers to submit regulatory proposals. The rules must be approved by the National Monetary Council (CMN). The project also determines that, if there is no regulation in the period, the total charged in the revolving will be limited to 100% – that is, it cannot exceed the original amount of the debt. The text now goes to vote in the Senate. Regarding the deadline for regulating the proposal, Febraban said it is confident that the card industry, the federal government and the CMN will “succeed in promoting material evolutions in the credit card”. He also said that he will continue debating with the government and Congress “to face the high cost of credit in the country”. Card revolving is a modality activated automatically when the customer does not pay the total amount of the card bill by the due date. It is the most expensive category in the country, with interest that, on average, reached 445.7% per year in July. According to data from the Central Bank, defaults on revolving operations reached 49.5% in July this year. There are R$ 76 billion in debt in the country, according to the institution.

[ad_2]

Source link