Instruction (Historical) No. 9/2024

Instruction No. 9/2024
BO No. 5/2024 3rd Supplement • 2024/06/06
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Topics
Supervision :: Behavioral Supervision
Mod. 99999940/T – 01/14
Index
Text of the Instruction
Text of the Instruction
Subject: Disclosure of maximum rates applicable to consumer credit contracts in the 3rd quarter of 2024

Decree-Law No. 133/2009, of June 2, which transposed into the internal legal order Directive No. 2008/48/EC, of April 23, relating to consumer credit contracts, established the regime of maximum rates applicable to these contracts.

According to Article 28 of Decree-Law No. 133/2009, in the current wording, the maximum rates for each type of credit are determined based on the Average Annual Effective Global Rates (TAEG) practiced in the market by credit institutions in the previous quarter, increased by one-quarter. Additionally, the maximum rate of any type of credit cannot exceed the average TAEG of the entire consumer credit market, increased by 50%. Applying the criterion defined in law, the Banco de Portugal quarterly discloses the maximum rates for different types of credit, for application to contracts to be concluded in the following quarter.

The rates defined in this Instruction constitute maximum limits to the charges that can be contracted in each type of credit contract, and under no circumstances may they be referred to as "legal rates". The freedom to contract financing conditions remains, with the sole exception of compliance with these limits.

Thus, in 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 Banco de Portugal determines the following:

1. Consumer credit contracts, concluded within the scope of Decree-Law No. 133/2009, of June 2, shall observe the maximum rate regime defined in Article 28.

2. In the 3rd quarter of 2024, the maximum rates set out in the tables below apply to each type of credit contract:

3rd quarter of 2024
Maximum TAEG
Personal Credit
Purpose Education, Health, Renewable Energies and Financial Leasing of Equipment 9.2% Other Personal Credits (without specific financing, home, consolidated and other purposes) 15.8% Car Credit Financial Leasing or ALD: new 6.7% Financial Leasing or ALD: used 7.2% With retention of ownership and others: new 11.3% With retention of ownership and others: used 14.3% Credit Cards, Credit Lines, Bank Current Accounts and Overdraft Facilities 19.2%

3rd quarter of 2024
Maximum TAN
Credit Overdrafts 19.2%

3. The types of credit contracts contained in the previous tables correspond to the credit categories defined in Instruction No. 14/2013, except for credit overdrafts which are defined in Decree-Law No. 133/2009.

4. This Instruction enters into force on July 1, 2024.