New Measure Allows Brazilian Consumers to Transfer Credit Card Debts for Better Terms
The Brazilian government has introduced a new measure that will revolutionize the way consumers handle credit card debt starting July 1. This initiative allows consumers to transfer their credit card debts to financial institutions offering more favorable terms, specifically targeting the high-interest rates associated with revolving credit.
Regulated by the Central Bank and the National Monetary Board, this measure eliminates the interest charged on revolving credit and installment bills, providing consumers with the opportunity to seek out institutions with lower interest rates or better payment terms. This transferability also extends to postpaid methods and existing debts, including those already in installments.
The goal of this measure is to increase competition among financial institutions, giving consumers more options and better conditions for repaying their debts. It is important to note that transfers can only be made between banks licensed by the Central Bank of Brazil.
With this change, consumers are expected to have more control over their finances, reduce financial fees associated with credit card payments, and promote more efficient and responsible management of personal credit in the country. This initiative aims to empower consumers and improve their financial well-being in the long run.
