Brazil governor promises to end high-interest rotating credit
The governor of the Central Bank of Brazil (BCB) told the country’s senate that the central bank is preparing legislation to end rotating credit card debt.
Roberto Campos Neto was referring to a system where lenders converted unpaid credit-card balances into high-interest loans for a 30-day period, after which it goes to an instalment system. As of June, the annual rate on rotating credit was 437.3%. Campos Neto said the default rate on revolving balances was 52%.
The governor said the central
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