The content has been shared, if you want to share this content with other users click here.
The Brazilian senate's economic affairs committee approved a bill this week to cap credit card interest rates.
Interest rates would be limited to a maximum of double the bank deposit certificate rate, known as CDI in Portuguese. It is is currently close to the country's key rate of 14.0%, meaning that annual credit card interest rates could not surpass 28%.
The bill, which was authored by senator Ivo Cassol, will now be voted on by the full senate, according to local media reports.
BNamericas also reported earlier this month that a study conducted by consumer protection association Proteste found the country's average credit card interest rate to be the highest in Latin America, at 436% annually. That is about 10 times higher than in Peru, which has the second highest average at 43.7%.
The study also found that Santander Brasil's Santander Free card charges the highest interest rate in the world, at 1,158%.