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The maximum rates for consumer credit will be increased from 1 December by 1 to 2 percentage points. Even “going overdrawn” on your checking account can become more expensive. This was reported by the Federal Public Service Economics.

The credit costs that can be charged to a consumer credit, expressed in maximum effective annual percentage rates or APRs, are limited by law. These limits will be increased in December.

The strongest increase, +2 percentage points, concerns credit lines, such as credit cards sold by banks, department stores or mail order companies, and the possibility of going below zero on the current account. For the latter, a maximum “penalty interest” of 11.50 per cent is envisaged from December. For credit cards, the new maximum APR is between 12.50 percent (more than 5,000 euros) and 15.50 percent (less than 1,250 euros).

The maximum APRs for installment loans and assignments increase by 1.5 percentage points, to 11% above 5,000 euros, 14% for amounts between 1,250 and 5,000 euros and 19% below 1,250 euros. And then there’s finance leasing, where you lease something and have the option to buy it at the end of the lease term. The maximum APR for this ranges from December from 9 percent (more than 5,000 euros) to 13 percent (up to 1,250 euros).

The FPS Economy points out that the new ceilings apply only to new credit agreements and existing agreements with a floating lending rate. Therefore, they do not apply to existing contracts with a fixed interest rate.