Law Project 3003/26 requires banks and other financial institutions to disclose the actual interest rate applied in credit operations. The text also stipulates that the Effective Total Cost (ETC) of the operation must be presented in advertisements with the same prominence as the interest rate. This applies to advertising, commercial proposals, contracts, apps, and simulations.
According to the text, it is prohibited to:
- advertise rates lower than those actually charged;
- omit mandatory consumer charges;
- dilute costs outside the advertised interest rate;
- utilize the "off-the-book" interest rate; and
- disclose nominal rate that is disconnected from the actual cost.
The disclosure document issued by the institutions must include the interest rate, administrative fees, mandatory insurance, taxes, and any other financial charges of the operation. The supervision will be carried out by the Central Bank of Brazil, which will have 90 days to regulate the norm and apply sanctions such as warning, fine, and reimbursement to the consumer.
The author of the project, Deputy José Medeiros (PL-MT), states that the measure balances information levels between consumers and financial market operators. "The consumer receives offers with apparently low rates, but the actual cost of the operation is significantly higher due to additional charges spread outside the advertised rate," the parliamentarian noted.
Next steps
The proposal will be reviewed indefinitive characterby the commissions of Consumer Protection; of Finance and Taxation; and of Constitution and Justice and of Citizenship of the Chamber of Deputies.
To become law, the text must be approved by both the Chamber and the Senate.