A new law has been signed that changes credit cards for people with CPFs from 0 to 9!

The revolving credit landscape in Brazil is undergoing major transformations with the implementation of new legislation aimed at the financial protection of consumers. Under the leadership of the government of President Luiz Inacio Lula da Silva, this reform aims to improve the conditions for access to credit for all Brazilians, without discrimination regarding the CPF number.

Updated key rules for revolving credit

The new legislation requires that interest on revolving credit not exceed twice the original value of the debt. Thus, for example, if a consumer has a credit card debt of R$100, the total amount to be paid, including interest and fees, cannot exceed R$200. The measure aims to contain the accumulation of large debts and promote healthy financial management among Brazilian people.

Objectives and effects of reform

Before this legislation, consumers often faced excessively high interest rates, reaching values ​​exceeding 431.6% per annum. With a new cap on interest rates, it is expected that more people will be able to repay their debts in a more sustainable way, while avoiding compromising their income and quality of life. This measure aims to promote an environment more conducive to the responsible use of credit, helping to prevent consumer over-indebtedness.

Debt portability: a new opportunity

Legislation now makes debt portability easier, allowing consumers, from 1 July 2024, to transfer outstanding balances from one credit card to another without incurring additional costs. This amendment aims to stimulate competition between financial institutions, giving consumers the opportunity to choose more favorable terms in terms of interest rates and other fees.

Federal Law No. 23/14690 and its benefits

the Federal Law No. 14,690/23Which entered into force in early 2024, focuses primarily on consumer protection. Among the benefits of this new legislation are the following:

• Interest limits: Interest on revolving credit is limited to 100% of the original debt amount.
• Encouraging competition: The legislation encourages competition between financial institutions, which can lead to improved credit conditions.
• Greater financial control: With lower prices and clear information, consumers can make more informed financial choices.

Perspectives of the Brazilian consumer

These changes represent significant progress in financial justice and preventing over-indebtedness. The introduction of lower interest limits provides more control over the use of credit cards, while greater competition between banks promises to expand the choices available to consumers. This environment can help build more solid and responsible financial management.

Follow us on Google News