Abusive interest rates credit card fraud: how do you know if this is the case? What should you do in this situation?

Escrito por

Igor

With over a decade of experience in SEO and digital marketing, Igor Bernardo specializes in organic traffic strategies that deliver real results—such as increased visibility, generated...

Perfil completo

Seja um colunista

05/07/2025

11 min de leitura

"Abusive credit card interest rates" can turn a simple installment purchase into a real financial headache. If you've ever found yourself at a loss as to how your debt grew so much or felt like you're paying much more than you should, know that you're not alone. This is a problem that affects thousands of people every day, generating doubts and concerns about how to deal with the situation.

In this article, we'll explain in simple terms what abusive interest rates are, how to identify them, and what your rights are as a consumer. You'll also learn what to do if you're facing this situation and what alternatives can help you get out of the red.

See this text:

How do I know if the interest on my card is excessive?
What Does the Law Say About Abusive Interest?
When to Seek Legal Help?
How to Negotiate Credit Card Interest?

What is abusive credit card interest?

Abusive credit card interest rates are charged disproportionately, exceeding the limits of what is reasonable or what is considered acceptable by law or the financial market. They differ from regulated interest rates, which are defined by specific rules and generally follow a ceiling established by regulatory bodies, such as the Central Bank.

Abusive interest rates, on the other hand, can arise in situations where financial institutions charge excessively high rates, taking advantage of consumers' lack of knowledge or vulnerability.

For example, imagine you owe R$1,000 on your credit card and the interest rate is R$151 per month, well above the regulated average. In just one month, your debt would rise to R$1,150. If you don't pay and interest continues to accrue, after six months, that amount would jump to approximately R$2,313. In contrast, with a more reasonable rate of R$51 per month, your debt over the same period would be approximately R$1,340. This difference in the final amount illustrates the brutal impact that abusive interest rates can have on a person's budget.

Understand better with an example…

Imagine you owe R$1,000 on your credit card and the interest rate is R$151,300 per month, well above the regulated average. In just one month, your debt would rise to R$1,150. If you don't pay and the interest continues to accrue, after six months, that amount would jump to approximately R$2,313.

In contrast, with a more reasonable rate of 5% per month, the debt over the same period would be approximately R$ 1,340.

This difference in the final value illustrates the brutal impact that abusive interest rates can have on a person's budget.

It is essential to understand and recognize these numbers to identify abusive practices and seek solutions that protect your rights and finances.

How do I know if the interest on my card is excessive?

Identifying whether your credit card interest rates are excessive may seem complicated, but a few simple steps can help:

Compare with market rates: The Central Bank of Brazil regularly publishes the average interest rates charged by financial institutions. You can access this information on the Central Bank's official website and check if your card rate is significantly above this average. If the rates charged by your provider are significantly higher, this could be a sign of abusive practices.
Consult the card agreement: All interest rates should be detailed in the contract provided by the card issuer. Check the interest rate section and ensure the amount is in line with what you're being charged. If you can't find the physical contract, you can access the digital version on the card issuer's app or website.
Analyze the CET (Total Effective Cost): In addition to the interest rate, consider the APR, which includes all loan charges. A very high APR compared to the market average may also indicate abuse.
Check the monthly invoice: Your card statement typically shows the interest rate applied to revolving credit and installment plans. Compare this rate with the market average or the terms and conditions outlined in your contract.
Search for opinions and reports: If you notice that the fee charged is high, search online or on complaint platforms to see if other consumers are reporting problems with the same card company.

If you find significant differences or disproportionate amounts, seek detailed information and consider seeking assistance to renegotiate or even dispute the amounts charged.

What Does the Law Say About Abusive Interest?

In Brazil, legislation protects consumers against abusive practices, including charging excessive interest on credit card contracts. Consumer Protection Code (CDC) is the main rule governing this issue. According to the Consumer Protection Code, consumers have the right to challenge terms or practices considered abusive, which place the customer at an excessive disadvantage.

Main points of the legislation:

Abusive practices: Article 39 of the CDC prohibits demanding a manifestly excessive advantage from the consumer or imposing clauses that place the consumer at a disproportionate disadvantage.
Excessive injury: Provided for in Article 6, Section V, of the Consumer Protection Code, it occurs when one of the parties to a contract suffers excessive harm, unbalancing the consumer relationship. In cases of abusive interest, the consumer may claim excessive harm to review or even cancel the contract.

How does this apply to credit card interest?

If the interest charged is significantly higher than the market average or disproportionate to the service provided, it can be challenged in court. Furthermore, the Central Bank and the Superior Court of Justice (STJ) emphasize that interest rates must be justified and proportional, ensuring balance in contractual relationships.

You can consult the Law No. 8,078/1990 (Consumer Protection Code) hereIf you identify abusive charges, it is recommended that you seek legal advice to protect your rights.

When to seek legal help?

It's essential to seek legal help when you realize that the interest charged on your credit card is clearly abusive or violates the contractual terms or applicable law. Some situations in which legal assistance may be necessary include:

Rates well above the market average: If the interest charged by the operator is disproportionate to the rates published by the Central Bank.
Abusive clauses in the contract: When you identify clauses that place the consumer at an excessive disadvantage, contrary to the Consumer Protection Code.
Negotiation denials: If the card issuer refuses to negotiate or justify the fees charged.
Difficulty in contesting values: When you cannot resolve the issue directly with the operator and the charges continue to generate losses.

Where to seek help?

Procon: Procon offers free guidance and can mediate negotiations between consumers and credit card companies.
Public Defender's Office: For those who cannot afford a lawyer, the Public Defender's Office provides legal support in cases of abusive practices.
Specialized lawyers: A professional with experience in consumer law can help you assess the situation and file a lawsuit if necessary.
Complaint websites and platforms: Tools like Complain Here can be useful in exposing the problem and obtaining quick responses from companies.

Practical tip

Before seeking legal help, gather all documents related to your credit card, such as contracts, invoices, and payment receipts. This information is essential for proving abuse and ensuring your rights are protected.

How to Negotiate Credit Card Interest?

Renegotiating your credit card interest rate can be an effective way to reduce debt and regain financial control. Here are some strategies for conducting this negotiation:

1. Contact your bank or operator

Use customer service channels, such as telephone, apps, or physical branches, to start negotiations.
Explain your financial situation clearly and demonstrate your willingness to pay off the debt within your means.

2. Ask for an interest reduction

Request a review of the interest rate charged on your debt. Demonstrate that you're aware of the average market rates, available on the Central Bank's website, and ask the lender to align the interest charged with fairer rates.

3. Negotiate an affordable installment plan

Offer an installment plan with terms you can actually meet. It's better to agree on smaller installments and lower interest rates than to insist on terms that could lead to further delays.

4. Use competition as an argument

If your bank or provider doesn't offer favorable terms, mention that other financial institutions may have more advantageous renegotiation programs. This may encourage the provider to offer more flexible terms.

5. Look for renegotiation programs

Some credit card companies participate in debt renegotiation fairs organized by Procon or the Central Bank. Keep an eye out for these events to get discounts or special conditions.

Practical tips for negotiation

Action	Reason
Research average interest rates	Showing knowledge increases your negotiating power.
Demonstrate commitment	Banks tend to negotiate better with customers willing to pay.
Record the conversation	Keep protocols or record negotiations to guarantee your rights.

Maintaining an active and polite dialogue with the provider is essential to reaching an agreement. If the bank refuses to negotiate or insists on abusive conditions, consider seeking help from Procon or a specialized lawyer.

Alternatives to Avoid Abusive Interest Rates

If you're stuck with abusive credit card interest rates, there are alternatives that can help you reduce costs and regain financial control. Here are some options:

1. Credit portability

Transfer your debt to another financial institution that offers lower interest rates.
Portability can be done directly with the destination bank, which pays off the debt at the original bank and charges you a more advantageous rate.
Advantage: You pay less interest over time and can negotiate more affordable installment terms.

2. Loans with lower interest rates

Consider a personal or payroll loan to pay off your credit card balance in full.
Compare rates before signing up. These options generally have much lower interest rates than revolving credit on your credit card.
Example: If the interest on the card is 12% per month and you take out a loan for 2% per month, the total cost of debt decreases dramatically.

3. Invoice installment

Many operators offer bill installments as an alternative to revolving credit.
Negotiate an installment plan with fixed rates and terms that suit your budget.
Attention: Check the interest rates before signing up, as this is not always the cheapest option.

Comparison of alternatives

Option	Main Advantage	Necessary Care
Credit portability	Reduced rates	Check additional costs (IOF, tariffs).
Personal loan	Lower interest rates	Make sure the term and installment amount fit your budget.
Invoice installment	Immediate debt control	Confirm the fees applied so you don't pay more than necessary.

Why are these options better?

These alternatives help reduce the impact of abusive interest rates in the long term, preventing debt accumulation. By exchanging a high rate for a lower one, you save money and can plan your finances with greater predictability. Before choosing, assess your repayment capacity and, if necessary, seek financial advice.

We hope we've helped you on your journey against abusive interest rates! See you next time!

Sobre o autor

Igor

Editor-in-Chief

With over a decade of experience in SEO and digital marketing, Igor Bernardo specializes in organic traffic strategies focused on real results—such as increased visibility, lead generation, and sales. He currently heads the SEO department at Geniuzz.