As of July 1 of this year, a new measure comes into effect that will allow Brazilian consumers to transfer their credit card debts to financial institutions that offer more favorable terms. This initiative specifically targets revolving credit, known for its high interest rates, which often contributes to household over-indebtedness.
The measure, regulated by the Central Bank and the National Monetary Board, puts an end to the interest charged on revolving credit and installment bills from the beginning of this year. Now, the possibility of transferring the outstanding balance on a credit card bill is also valid for postpaid methods and other debts already assumed, including those that are already in installments.
The transition will allow consumers to look for financial institutions that offer lower interest rates or better payment terms. After receiving an offer from an alternative institution, consumers will be able to check whether the bank with which they hold the original debt is willing to make a competitive counter-offer.
According to the Central Bank, this measure aims to increase competition between financial institutions and provide consumers with greater choices and better conditions for repaying their debts. It is important to note that transferability will only be possible between banks licensed by the Central Bank of Brazil.
With this change, it is expected that consumers will have more control over their finances and will be able to reduce financial fees associated with credit card payments, promoting more efficient and responsible management of personal credit in the country.
