Credit card issuers face US$146mn in fines for illegal charges

Friday, October 14, 2011

Brazil's federal justice system has fined eight credit card issuers a total of 254mn reais (US$146mn) for failing to comply with a 2006 court ruling ordering the suspension of illegal charges on clients, Rio de Janeiro's public ministry said in a statement.

The credit card issuers have 15 days to pay the fines - at 31.8mn reais each - from publication date of the ruling, issued by the 30th federal court of Rio de Janeiro. Should the companies not pay by the set date, the fine will increase 10%.

The companies are Citicard, Real, Itaucard, Ourocard, Bradesco (NYSE: BBD), Banerj Cartões, Banco Fininvest and Federal Card.

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Money from the fines will go to a federal defense fund to support consumer rights and environmental projects.