Among others, the modifications to the Credit Card Law included in the new President’s DNU eliminate the cap on punitive interest. I know all the details.
With a inflationary process in full accelerationthe Credit cards they become a increasingly used instrument by consumers. However the Decree of Necessity and Urgency (DNU) published by the president Javier Milei imposed modifications to the Credit Card Law which is worth taking into account.
When the DNU comes into force, as of January will remain removed some caps related to the use of Credit cards. The most relevant consequence is that there will be no cap on punitive interest that may be charged to customers for non-payment. Besides, sanctions are repealed for companies that do not report the interest rate.
Previously, the punitive interest rate was 122% annually (11% monthly). However, after the release could become more expensiveeven according to some specialists it could reach up to a 400% annually.
In that framework, pay the minimum indicated in the summary, a practice that was already inadvisable because it generated interest, will now become highly riskier.
Credit cards
Mariano Fuchila
Credit cards: options to pay the card statement
- Minimum payment: This is the minimum amount that must be paid to avoid legal problems. Furthermore, if this amount is not paid, the plastic is blocked at the same time, so the user will be unable to continue receiving said financing.
- Partial payment: This type of payment does not cover the total of the summary for that month. Therefore, The remaining balance remains outstanding and generates interest. The calculation is subject to the amount remaining pending and the delay in cancellation.
- Full payment: This type of payment is carried out when the payment of the total sum of that month’s summary is made. This also includes any interest included and the bank’s administrative expenses.
Source: Ambito
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