Credit Card Interest in Brazil: The Rotativo, the Minimum Payment and the 100% Cap

Free notification at least 2 days before due date warning that not paying the full bill results in interest (art. 11-C); composition of the required payment and 30 days' notice for minimum changes (art. 11); full bill as default payment option (art. 11-A); bill layout in three groups, financing options with rates and CET from lowest to highest total cost, in force from 1 July 2024 (art. 9).

Three paths when the bill isn't paid in full (bill installment plan, rotativo without comissão de permanência, default with rotativo interest and fine).

IOF is charged on the credit card rotativo.

Rotativo only until the next bill's due date; later financing only on more advantageous terms; line may be in the contract; installed amounts can't return to the rotativo; cheaper financing allowed any time before; not applicable to payroll-deducted (consignado) cards; in force from 3 April 2017.

Art. 28: issuers to submit limits; if not approved within 90 days, total interest and charges cannot exceed the original debt. Art. 27 §§ 1-2: right to port card bill debt, including installed amounts; no charge by the original creditor.

Implements the cap: defines interest, charges (fines, default interest, fees) and original debt; applies when rotativo migrates to installments; renegotiation assured at any time with each renegotiation capped at the initial original debt net of charges already paid (art. 2º-C); applies to operations after the 90-day period regardless of contract date.

Cap applies to card debts originating from 3 January 2024 regardless of contract date; excludes purchases in installments with interest; applies to installed rotativo including fines and default interest; R$1,000 can reach at most R$2,000.

Contents of the DDC for card operations (original debt, interest charged, interest still chargeable) and availability (continuous in electronic channels; immediately in person; within 1 business day in other channels).

Early settlement of the card bill, total or partial, is a right, with no fee and the discount at the contracted rate.

Card bill debt portability; not applicable to consignado cards.

Portability can take up to 7 business days if the information exchanged between the institutions allows the transfer.

Crédito rotativo defined as the balance remaining after the bill's due date: the difference between the bill total and the amount paid.

Escalation path: customer service (SAC), ombudsman (ouvidoria), then the Banco Central, Procon or consumidor.gov.br.

Art. 12, II (monthly notices on pre-approved and revolving debt, including cards); art. 13 (30 days' notice of rate changes, simplified cancellation on increases, new rates only on future balances); art. 18 (in force on publication).

Art. 3 (monthly free digital information on pre-approved and revolving balances including cards and the effective monthly rate, with emergency-use alert and cheaper-credit information); art. 4 (30 days' notice of rate changes, simplified cancellation on increases, future balances only); art. 7 (in force 1 July 2027).