Regulatory Alerts1995-01-26
Added
Circular Letter No. 3/95/DSB of 26/01/95: Interpretation of Decree-Law No. 220/94 of 23 August
The Banco de Portugal provides binding interpretations of Decree-Law No. 220/94 of 23 August to ensure uniform application by credit institutions. The circular clarifies that account statements must specifically relate to the credit operation, defines the scope of applicability regarding foreign establishments and renewals, and mandates the disclosure of commissions and the prime rate when used. It further specifies that the Effective Annual Percentage Rate (TAE) is not required for consumer credit in favor of the Annual Percentage Rate of Charge (TAEG), and defines the conditions for variable interest rates and early repayment without penalty.