The Central Bank orders the refinancing of credit card maturities

The entities of the financial system must automatically refinance the unpaid balances of credit cards with a one-year term with 3 months grace, 9 equal and consecutive monthly installments and a nominal annual rate of 43%, as the Central Bank ordered today. . Clients who choose not to pay the total due date will not have to carry out procedures to access this benefit. The expiration of the summaries of the credit cards operated between March 20 and April 12 were transferred to April 13, without generating compensatory interest, by circular from the Central Bank.

The entity now provided by Communication “A” 6964 that the unpaid balances corresponding to maturities of financing of financial entities under the credit card regime that operate from April 13 to April 30 should be automatically refinanced, without need for any procedure by the account holder.
Issuing banks must offer at least three months of grace and 9 fixed installments in such a way, the installments will begin to be paid in August at a value of 147 pesos for every 1,000 pesos refinanced.

These refinanced balances may be prepaid in whole or in part at any time and at no cost –except the compensatory interest accrued until the prepayment- when the client requires it.

Both the direct debit and the automatic debit in the financial entity itself can be reversed at the request of the clients within 30 calendar days from the date of the debit and the return of the funds must operate within 3 business days of the request .

The Cenral circular also provided for a reduction to 43% (now established at 49%), effective as of April 13 of the maximum annual rate for compensatory interest that financial entities can receive for balances financed by credit cards. , in order to guarantee that the trajectory of said rate is aligned with the monetary policy rate. The Central Bank carries out a policy of reducing the interest rate for financing
of credit card balance. In March, a ceiling of 55% was established, which dropped to 49% and now to 43%, with the elimination of punitive interests.