Who has never been tempted to close a contract that seemed unmissable, but in the end had abusive interest? Sometimes the seller is so skilled that he manages to turn his lame proposals into unmissable opportunities, leading anyone who is not attentive to every detail to doom.

It is increasingly normal for consumers to be victims of companies that charge abusive interest on their apparently “attractive” loan contracts. And in addition to abusive interest, there are a number of other pitfalls that can be found in bank contracts.

In addition to being attentive to every detail of what is being said by the seller, you need to read the contract and each clause carefully or even request a Revisional Contract action.

Here you will find out about these and other important information to avoid falling into abusive interest rates. In addition to knowing what to do, how to settle the contract, you will be able to identify whether the interest you are paying on your loan is abusive. In the end, we will show you 5 loan options to settle these contracts, so that you can choose the ideal one for your needs. Stay with us to follow all the details.

And if you are already having problems paying abusive interest, rest assured that we will help you get out of this once and for all, just stay with us. 

According to 2020 data from the Central Bank, the overdraft, for example, can reach an interest rate of 318.7% per year, while the revolving credit card is around 300.3%. This happens because the lines of credit offered in Brazil are mainly known for their abusive interest rates.

In many cases, Brazilians borrow to pay their bills and credit card debts (which have one of the highest interest rates), but nothing can be worse than having to pay high and even abusive interest rates twice as much.

There are more and more companies wanting to provide loans, each one with a more attractive proposal than the other, but what happens in the end is you are stuck paying extremely high interest rates.

Therefore, it is very important to know how to identify when interest charges are higher than normal, to know how to calculate fees and to know the main scenarios in which abusive practices occur. Check out everything you need to know about abusive interest below.

Interest is nothing more than a remuneration charged on top of the value of a loan of money. That is, when you borrow money from a financial institution, you will pay a greater amount than you asked for and thus interest rates are born.

It is a percentage charged on the borrowed amount (interest rate) and they exist because whoever lends money assumes the risk of the amount being delayed or even not being received back. In this way, those who lend need to be sure that they will win, as the loan can also make the company stop earning income on investments, for example.

The loan is, therefore, a business that needs to be worth the risk for those who assign the amount. The borrower pays for this risk in the form of interest.

Abusive means “excessive” that results from an unfair, incorrect, undue, inappropriate situation. When the interest rate is abusive it means saying that it is charged far beyond what should be normal, embarrassing the consumer and turning him into a victim of injustice.

It can be said that abusive interest is being charged on your contract when the interest is much higher than necessary to cover the loan risk. When the charge is much higher than the average provided by the Central Bank or violates the Consumer Protection Code, it means that you are being the victim of abusive charges.

In these cases, the customer can get out of this situation by choosing to pay interest at another institution that is more affordable, taking his debt to another company.

There is no standard that defines which interest rates are abusive and which are not. But be wary if rates are much higher than the market average. So, before taking out a loan, always be aware of the prices of the competition and do your research calmly to pay the lowest amount possible.

A good alternative to stay informed and avoid these abusive practices is to consult the average of financial institutions on the Central Bank website. Through it, it is then possible to find out the average amount of interest applied to each type of loan.

However, you may still be wondering “how to identify abusive interest in my contract?” A good example is car financing, which is repeatedly accused of having abusive interest rates.

In the Central Bank table, we can see that in the vehicle acquisition modality, the rates generally vary between 0.74% and 0.36% per month. However, most apply interest between 1.5% and 3%. Can you tell? This is a good comparison to understand if what you are being charged differs too much from the market.

Thinking about making it easier for you to know whether or not you are paying abusive interest rates, we separate a small comparison.

Learn now about the most common cases of abusive interest charges:

It is worth mentioning then that if you mess up and buy more than you can afford with your credit card and then fail to pay the full amount of the invoice it can be a difficult road to go.

Therefore, also beware of splitting the payment in many installments, as this may give you the false illusion that the product was not that expensive. But every month your income will be committed to paying off the amount you paid in installments and when you add up all the installments of different purchases, you may be surprised by the final amount.

But it is mandatory that the creditor inform the customer of the total cost of the operation, in addition to the payment terms, before taking out the loan.

Now that you know how to identify abusive interest rates, learn how to deal with them.

The Credit Revisional action is perfect to get around this situation. Because, it is a process by which the revision of all clauses is requested in court, being revised under a technical opinion values referring to fees and interest.

This contract review request acts directly on the analysis of clauses through calculations of abusive interest and other irregularities committed by the contracted bank. In this way, it will be mathematically proven whether the clauses are abusive and harmful to the consumer, so that the debt amount is reduced.

In addition to having the value reduced, the consumer also returns double the amounts improperly charged. It is possible in some cases to resort to compensation for moral damages in the face of abusive charges. Because this abusive conduct by the financial institution is configured as bad faith.

It is also worth noting that the victim can file a lawsuit even though the loan installments are overdue. Well, the right to file a revisional action is acquired from the moment you sign the contract with the institution. It suffices, therefore, that there are abnormalities in the contract.

Here you will find out how to pay off your contract with abusive interest rates, but we are not talking about asking for another loan and getting even more involved in debts and interest rates.

But, yes, carrying out credit portability, an option for you who do not want to change financial institutions even after closing the loan agreement.

The credit portability option helps anyone who wants to exchange an expensive debt for a cheaper one. For example, when your bank's interest rates are higher than the competition's, you may then choose to transfer that debt to another bank. Thus, you can reduce your cost with interest for a cheaper option from another institution.

You can then request credit portability at any time, claiming the reason for the change as quality of service or more attractive interest rates. This option is little known by the population and serves to generate more competitiveness among financial institutions and improve proposals for consumers.

So, now we are going to show you the 5 best loan options to pay off a contract with abusive interest rates. Therefore, continue with us and check out the institutions with more affordable values than me.rfallen.

Creditas is among the best personal credit options, as it has cheaper interest rates. However, this happens because the company requests some asset as a form of guarantee, whether it be a house or a vehicle.

Therefore, the interest rates start at 0.75% per month with a property as collateral and rates of 1.49% per month with a vehicle as collateral.

A Lenda is one of the main options for you who want to take out a loan online. This company offers interest rates starting at 3.2% per month, which is favorable.

In addition, you can do simulations and check details about the loan, such as the number of installments and interest, all through the website. Which allows you more convenience and practicality to access this information whenever you want.

Depending on the credit analysis, you can request from R$ 2,500.00 to R$ 50,000.00 reais in loans for various purposes, as the amounts are flexible, and you can pay in up to 36 installments.

Geru also avoids bureaucracy and also offers values ranging from R$ 2,000.00 to R$ 50,000.00 reais. You can pay in up to 36 installments and interest rates range from 2% to 8.2% depending on the credit analysis.

In addition, the money is available within 1 business day, so you can withdraw the amount from a bank or correspondent bank, quickly and easily.

At Just, you can apply for a personal loan with or without collateral, with varying interest rates. It works like this: with a vehicle guarantee, rates range from 1,95% to 3,34% without guarantee, the maximum interest charged is up to 10% per month, all depending on the credit analysis.

At SuperSim you make your loan 100% online and the company promises the money in your account within 30 minutes. The value then is between R$ 500.00 and R$ 2,500.00 reais and can be paid in 4 to 12 installments.

In this case, it is also possible to take out a loan with cell phone guarantee or without guarantee, being charged a maximum interest of up to 20.11%, varying according to the credit analysis.

That's it, now you have all the important information to look for the best loan options to pay off debts with abusive interest rates and adjust your financial life.