Regulatory Alerts2019-03-13
Added · Updated
Instruction No. 6/2019: Disclosure of Maximum Rates Applicable to Consumer Credit Contracts in the Second Quarter of 2019
The Bank of Portugal establishes maximum annual effective global rates (TAEG) and maximum nominal annual rates (TAN) for various consumer credit contracts for the second quarter of 2019. These limits apply to personal credit, education and health financing, renewable energy, equipment leasing, automobile loans, credit cards, and overdrafts, with specific caps ranging from 4.8% to 16.1%. The instruction mandates that contracts signed in the subsequent quarter must adhere to these defined maximum charges, which are calculated based on previous market averages plus statutory margins. The regulation enters into force on April 1, 2019.
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