Tuesday, May 17, 2022 | 6:28 p.m.
The Central Bank increased the credit card debt refinancing rate for people who cannot pay the summary, pay the minimum amounts or want to refinance them. The measure was made official through Communication “A” 7512 of the BCRA, where the rate for the refinancing of credits went from 51% to 53% annually as of June.
The “revolving” – refinancing the balance of the credit card – had a regulated annual nominal rate of 51%, which rose 200 points on par with the rate increase announced last week, so it became 53%. To this is added the Total Financial Cost (CFT) that depends on each bank and is around 81% per year.
Added to this are administration expenses, debt balance insurance and VAT, which ends up giving a higher rate in many cases that can reach 90%. This, as long as the amount financed does not exceed $200,000 because a higher rate is applied to the excess, where the CFT can be almost 200%.
Rate also increased for Now 12
The Government agreed to the claims of the banks and authorized the increase in the interest rate that the Now 12 program has to buy in installments with credit cards.
In the resolution published today in the Official Gazette by the Ministry of Productive Development, it is indicated that “the banking chambers and associations have expressed the need to update the discount rates provided for in the aforementioned Program, in order to maintain its sustainability.”
And “that as a result of the evolution of the reference rates for financing with credit cards and personal loans, as well as the trajectory of the prices and the growth of the “NOW 12″ Program, it is appropriate to modify the planned financial conditions”.
Within the framework of Resolution 404/2022, the Ministry of Domestic Trade renewed the maximum discount rates that bank issuers can apply to businesses and the maximum interest limits that businesses can charge consumers for each current financing plan included in the Now 12 program.
In this way, the maximum direct discount rates that bank issuers can apply to the business, to be collected within 10 business days after the sale is made for each financing plan are 4.06% for 3 installments; 7.81% for 6; 14.73% for 12; 23.56% for 18; and 29.68% for 24.
In turn, although many businesses do not charge interest, new maximum limits were established for each financing plan.
Thus, the maximum interest that can be charged on the cash price is 4.23% for 3 installments; 8.47% for 6; 17.28% for 12; 30.83% for 18; and 42.20% for 24.