Circular No. 2936 — Provisions on the inclusion in credit contracts of information regarding charges and other expenses, and the disclosure of effective monthly interest rates

Circular No. 2936, of October 14, 1999

CIRCULAR NO. 2936

Provisions on the inclusion, in credit grant contracts, of information regarding charges and other expenses incurred during the normal course of the operation, as well as on the disclosure of effective monthly rates practiced in current account credit opening contracts.

The Collegiate Board of the Central Bank of Brazil, in a session held on October 13, 1999, based on Article 10, item V, of Law No. 4,595, of December 31, 1964, and on Article 9 of Law No. 8,660, of May 28, 1993,

D E C I D E D:

Article 1. Amend Article 8 of Circular No. 2,905, of June 30, 1999, which shall henceforth be in effect with the following wording:

“Article 8. Credit grant contracts must contain information regarding all charges and expenses incurred during the normal course of the operation, specifying:

I - the effective monthly and annual interest rates equivalent to interest;

II - the price index or remuneration base, if agreed upon;

III - taxes and contributions and their respective values;

IV - tariffs and other expenses and their respective values.

Sole Paragraph 1. In the case of operations in which the value of any charge or expense is defined only upon the release or placement of funds at the disposal of the contracting party, the contractual clause expressing this condition must inform the medium to be used for communicating this value.

Sole Paragraph 2. In the case of contracts providing for the possibility of increasing the value of any charge or expense, it is mandatory to include a clause stipulating that the contracting party will be previously informed of the respective increase, through the communication medium provided for in the contract.”

Article 2. The inclusion of the information referred to in Article 8 of Circular No. 2,905, of 1999, with the wording given by Article 1 of this Circular, shall be mandatory in contracts entered into from:

I - November 1, 1999, for operations with individuals; and

II - March 31, 2000, for operations with legal entities.

Circular No. 2936, of October 14, 1999

Article 3. The minimum and maximum effective monthly interest rates practiced in current account credit opening contracts - overdraft - must be permanently disclosed:

I - in a visible location within the premises of institutions and their correspondents;

II - via the Internet, in the case of institutions that maintain their own page on this medium or through other communication media usually used.

Article 4. This Circular enters into force on the date of its publication.

Article 5. Circulars No. 2,610, of August 31, 1995, and No. 2,914, of July 28, 1999, and Carta-Circular No. 2,559, of July 5, 1995, are hereby revoked.

Brasília, October 14, 1999.

Sérgio Darcy da Silva Alves
Director

This text does not replace the published version in the DOU and Sisbacen.