Regulatory Alerts2020-02-24
Added · Updated
Instruction No. 04/2020 - Revision of Maximum Rates Applicable to Consumer Credit Contracts in the First Quarter of 2020
The Bank of Portugal revises the maximum effective annual rates (TAEG) and maximum nominal rates (TAN) applicable to consumer credit contracts for the first quarter of 2020, necessitated by changes to the Stamp Duty under the 2020 State Budget. The instruction sets specific maximum rates for various credit types, including 6.5% for education, health, and renewable energy loans, 13.3% for other personal loans, and 16.0% for credit cards and overdrafts. It explicitly revokes Instruction No. 22/2019 and establishes that these limits constitute maximum charges that cannot be referred to as "legal rates," while maintaining freedom of contract within these bounds. The instruction enters into force on the date the law approving the 2020 State Budget takes effect.