On Sep. 7, POR CB issued instruction 21/2023 on maximum rates.
POR CB issued Instruction 21/2023 on maximum rates to apply in Q4 2023 to consumer credit contracts within the scope of DL 133/2009.
Follows POR CB Jun. 2021 issued ins 8/2021 setting limits to apply Q3 2021, #68938.
Document dated Sep. 7, received from POR CB on Oct. 3, summarized Oct. 6, 2023.
Overview
In line with art 28 DL 133/2009 current wording, maximum rates for each type of loan are determined based on Global Effective Annual Charge Rates (APR) averages applied in market by credit institutions in the previous quarter plus a quarter.
Additionally, maximum rate for any type of credit cannot exceed average APR of entire consumer credit market plus 50%.
Applying defined criteria POR CB published maximum rates for different types of loans on a quarterly basis, to be applied to contracts to be signed in the following quarter.
Rates set in instruction are maximum limits to charges that may be contracted in each type of loan and, cannot, under any circumstances, be referred to as legal fees.
Freedom to agree financing conditions remains save for compliance with these limits.
Consumer credit contracts concluded within scope of DL 133/2009 must observe the maximum rate regime defined in art 28.2.
Ins directed to banks, central mutual agricultural credit bank, savings banks, mutual agricultural credit firm, mutual agricultural credit firm (not belonging to SICAM).
In Q4 2023, maximum rates in force for each type of agreement are detailed in tables.
I.e. personal loan for education, health, renewable energy and location 7.6%.
For equipment, other personal loans (without specific purpose, household/mortgage, consolidated, other purposes) 14.8%; for car different types range is: 5.3% to 13.5%.
Credit Cards, lines of credit, bank current accounts and payment, overdrafts 17.9%.
Credit agreement listed in tables correspond to credit categories defined in Instruction 14/2013, except for excesses of credit defined in DL 133/2009.
Effectiveness
Instruction comes into force on Oct. 1, 2023.
Mar. 6, 2024 Maximum Rates Q2 2024
On Mar. 6, 2024, POR CB announced maximum rates applicable to loans in Q2 2024.
Rates for different types of consumer credit determined, published quarterly (table).
Maximum rates are determined based on average Annual Global Effective Charge Rates (TAEG) used in market by credit institutions in previous quarter plus a quarter.
Those cannot exceed the average APR of all consumer credit contracts plus 50%.
Maximum rate regime also provides that maximum APR of overdraft facility contracts with obligation to repay within month and maximum nominal annual rate (TAN) of credit overruns equal to maximum APR defined for credit overdraft contracts.
Latter in form of overdraft facility with a repayment period of more than one month.
DL 133/2009 transposed CCD and set maximum rates applicable to these contracts.
Per art 28 maximum rates for each type of credit set based on Global Effective Annual Charge Rates (APR) averages in market by credit firms in previous quarter, plus a bit.
Additionally, maximum rate for any type of credit cannot exceed average APR of the entire consumer credit market, plus 50%.
Applying defined criteria POR CB issues maximum rates for different types of loans on quarterly basis, to be applied to contracts to be signed in the following quarter.
Rates in instruction constitute maximum limits to charges that may be contracted in each type of loan, cannot, under any circumstances, be referred to as legal fees.
Freedom to contract financing conditions remains, with only exception of these limits.
In Q2 2024 maximum rates in tables, types of loans in tables correspond to credit categories defined in Ins 14/2013, except for excesses of credit set in DL 133/2009.
The rates included in the Instruction 3/2024 will come into force on Apr. 1, 2024.
Document dated Mar. 6, received from POR CB Apr. 9, summarized on Apr. 11, 2024.
The types of credit agreements in its tables correspond to credit categories defined in Instruction 14/2013, except for credit overruns which are defined in DL 133/2009.
The Instruction 9/2024 of Jun. 6, 2024, will enter into force on Jul. 1, 2024.
Document dated Jun. 6, received from POR CB Jul. 26, summarized on Jul. 30, 2024.
Sep. 5, 2024 Rates for Q4 2024
On Sep. 5, 2024, POR CB issued Instruction 13/2024 on maximum rates for different types of consumer credit as determined and issued quarterly, effective Oct. 1, 2024.
Dec. 2024 Rates for Q1 2025
On Dec. 5, 2024, POR CB issued Instruction 16/2024 on maximum rates for different types of consumer credit as determined and issued quarterly, effective Jan. 1, 2025.
Regulators
POR CB
Entity Types
Bank; BS; CNSM; CU; MG Orig; MSB; Servicer
Reference
Ins 16/2024, 12/5/2024; OG 8/2024, Ins 13/2024, PR, 9/5/2024; OG 5/2024, Ins 9/2024, PR, 6/6/2024; OG 2/2024, Ins 3/2024, PR 3/6/2024; OG 8/2023, Ins 21/2023, PR, 9/7/2023; Ins 14/2013; DL 133/2009; CCD Dir 2008/48; Citation: Instruction 13/2024; Instruction 9/2024; Instruction 21/2023; Instruction 3/2024;
