Anti-greed bill wants to limit interest rates in Brazil: understand why it would be a disaster

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By Bruna Komarchesqui

This month, a bill presented by federal congressman Mauricio Neves (PP/SP) proposes the creation of an anti-greed law limiting the charging of interest rates in Brazil.

PL 398/2023 suggests forbidding “interest that exceeds 100% of the value of the good or service financed by credit card and/or overdraft”.

The idea is that when the debtor pays the equivalent of twice the amount initially borrowed, the debt is cleared “regardless of contrary contractual provisions”.

All charges exceeding this limit, Neves argues, should be returned in double to the borrower.

According to economists interviewed by . . .

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