Know your new financial rights
Posted: Tue Jan 07, 2025 10:24 am
Now, the interest rate on loans and deposits will be modified immediately when it benefits the user.
A month and a half after the debate began, the Parliament approved a law that strengthens the Consumer Protection Code and improves the Law on Transparency of the Financial System .
The objective of the regulation is to facilitate consumer access to information on the real cost of financial products and services , as well as to avoid changsha number screening modifications to contracts without the user's consent.
Thus, among the main changes, it establishes the obligation of banks to present "in a clear and prominent manner" the Annual Effective Cost Rate * of their loans and the Annual Effective Yield Rate* (TREA) of their deposits or savings accounts.
In this sense, it prohibits the dissemination of different interest rates . Today, companies in the system use the Annual Interest Rate (AER), which does not include payments for postage, commissions, among others.
The EAR can confuse users because it does not indicate the real cost of the loans. The new law also prohibits the use of the terms "free" or "without cost" or the use of terms that imply gratuity for savings accounts that, in the end, do require payment from the client.
BE CAREFUL WITH THE RATE Likewise, it is stipulated that modifications to contracts, such as variations in interest rates, must be duly and promptly communicated, even via email.
Once users are informed, they will be given 45 days to object to the change, if applicable. After this period, and only with their consent, the modification will come into effect.
In the case of fixed-term loans or fixed-term deposits, subject to a fixed interest rate, entities may not make changes to the contracts, unless these are favorable to the client.
A month and a half after the debate began, the Parliament approved a law that strengthens the Consumer Protection Code and improves the Law on Transparency of the Financial System .
The objective of the regulation is to facilitate consumer access to information on the real cost of financial products and services , as well as to avoid changsha number screening modifications to contracts without the user's consent.
Thus, among the main changes, it establishes the obligation of banks to present "in a clear and prominent manner" the Annual Effective Cost Rate * of their loans and the Annual Effective Yield Rate* (TREA) of their deposits or savings accounts.
In this sense, it prohibits the dissemination of different interest rates . Today, companies in the system use the Annual Interest Rate (AER), which does not include payments for postage, commissions, among others.
The EAR can confuse users because it does not indicate the real cost of the loans. The new law also prohibits the use of the terms "free" or "without cost" or the use of terms that imply gratuity for savings accounts that, in the end, do require payment from the client.
BE CAREFUL WITH THE RATE Likewise, it is stipulated that modifications to contracts, such as variations in interest rates, must be duly and promptly communicated, even via email.
Once users are informed, they will be given 45 days to object to the change, if applicable. After this period, and only with their consent, the modification will come into effect.
In the case of fixed-term loans or fixed-term deposits, subject to a fixed interest rate, entities may not make changes to the contracts, unless these are favorable to the client.