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.

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Instruction No. xx/xxxx
BO No. xx • xx-xx-xxxx
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Topics
Supervision :: Behavioral Supervision
Mod. 99999940/T – 01/14
Index
Text of the Instruction
Text of the Instruction
Subject: Revision of maximum rates applicable to consumer credit contracts in the 1st quarter of 2020

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

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Source: Banco de Portugal — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works