Revolving credit card: Finance secretary says that interest-free installments are here to stay, but should not be ‘untouchable’

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The Senate gave 90 days for credit companies to present a proposal for an interest ceiling in this modality. Banks ask for a limit on the number of interest-free installments. The executive secretary of the Ministry of Finance, Dario Durigan, stated this Tuesday (17) that interest-free installment credit, through credit cards, “is here to stay”. But he also added that this should not be taken as “something untouchable”, that is, that there cannot be a limit imposed on plots. Durigan participated in the event “The future of payment methods”, promoted by the association of technology companies Zetta. Credit card revolving occurs when the customer does not pay the full amount of the bill and rolls the debt over to the next month. At the beginning of October, the Senate approved a project that limits these interest rates. The text has already been sanctioned by President Luiz Inácio Lula da Silva (PT). Developing: Senate approves debt renegotiation program and limits revolving credit card The project does not impose a ceiling on interest on revolving credit cards, but grants a period of 90 days for card issuers to present a proposal for ceiling, to be approved by the National Monetary Council (CMN). If a solution is not found within 90 days, the total charged by banks cannot exceed the original amount of the debt. “Congress’s departure seemed like a good solution to me. It creates a temporary rule. Until the beginning of next year, 90 days, the sector will have to present to the BC [uma proposta]. I have heard reports that talks are taking place. I think there are ways for us to consider, address the issue of interest, have lower interest rates, without causing harm to the banks, to the financial system”, declared the executive secretary of Finance. Debate on limits In September, the average annual interest rate credit card revolving amounts amounted to 445.7%. This is the most expensive rate in the financial system. The secretary of the Ministry of Finance assessed that the interest rates for this modality are very high. “I think it is politically unsustainable for it to remain this way”, added. He recalled that the banks’ position is that there should be a limitation on interest-free installment credit so that the discussion can move forward. According to Durigan, the path that appears to be being taken is to set an interest limit for the revolving credit card, and also, for the number of interest-free installments. “I’m not saying that this number of installments, or this interest ceiling, is correct. But this path seems to be the path that is currently being followed in the debate,” he added. “This is a debate that needs to be had. It needs to be discussed, perhaps a composition solution that limits both sides of the market balance, and we turn the page, could be the best way out. I would like to hear from the BC and the sectors”, he said. Durigan concluded that the final decision will be taken by the National Monetary Council (CMN), a collegiate formed by the ministers of Finance, Planning and the president of the BC, after conversation with the actors involved .

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