Disclosure of maximum rates applicable to consumer credit agreements in the 4th quarter of 2021

Instruction No. 12/2021Official Gazette No. 8/2021 2nd Supplement • 2021/09/09
..................................................................................................................................................................................................
Topics
Supervision :: Behavioral Supervision
Mod. 99999940/T – 01/14
Index
Instruction Text
Instruction Text
Subject: Disclosure of maximum rates applicable to consumer credit agreements in the 4th quarter of 2021 Decree-Law No. 133/2009, of June 2, which transposed Directive No. 2008/48/EC, of April 23, concerning consumer credit agreements, into the domestic legal system, established the regime of maximum rates applicable to these agreements. In accordance with Article 28 of Decree-Law No. 133/2009, in its current wording, the maximum rates for each type of credit are determined based on the average Annual Percentage Rates of Global Charges (APR) practiced in the market by credit institutions in the previous quarter, plus one quarter. Additionally, the maximum rate for any type of credit cannot exceed the average APR of the entire consumer credit market, plus 50%. Applying the criterion defined by law, the Bank of Portugal quarterly discloses the maximum rates for different types of credit, for application to agreements to be concluded in the following quarter. The rates defined in this Instruction constitute maximum limits for the charges that can be contracted in each type of credit agreement, and may not, under any circumstances, be referred to as “legal rates”. The freedom to contract financing conditions remains, with the sole exception of compliance with these limits. Thus, in the exercise of the competence attributed to it by Article 17 of its Organic Law and by Article 28 of Decree-Law No. 133/2009, of June 2, the Bank of Portugal determines the following:

1. Consumer credit agreements, concluded under Decree-Law No. 133/2009, must observe the maximum rate regime defined in Article 28.
2. In the 4th quarter of 2021, the maximum rates listed in the tables below are in force for each type of credit agreement:

Instruction No. 12/2021 Official Gazette No. 8/2021 2nd Supplement • 2021/09/09 Topics Supervision :: Behavioral Supervision
..................................................................................................................................................................................................
Mod. 99999940/T – 01/14
4th quarter of 2021
Maximum APR
Personal Credit
Purpose Education, Health, Renewable Energies and Financial Lease of Equipment 6.2% Other Personal Credits (without specific purpose, home, consolidated and other purposes) 12.9% Car Credit Financial Lease or ALD: new 3.1% Financial Lease or ALD: used 4.7% With retention of title and others: new 9.3% With retention of title and others: used 11.8% Credit Cards, Credit Lines, Bank Current Accounts and Overdraft Facilities 15.6% 4th quarter of 2021 Maximum NAR Overdrafts 15.6%
3. The types of credit agreement listed in the preceding tables correspond to the credit categories defined in Instruction No. 14/2013, except for overdrafts which are defined in Decree-Law No. 133/2009.
4. This Instruction enters into force on October 1, 2021.