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Using a borrowed credit card can result in a huge fine of R$180; see how to avoid the loss
Lending your credit card to friends or family may seem like a quick way out when someone is denied credit. However, this practice can be very costly. Recently, a court decision in Ceará drew attention when it determined a fine of R$180 for this type of situation. Find out how to avoid this loss and what has changed with the new credit card legislation in Brazil.
Be careful when using a borrowed credit card
Borrowing a credit card may seem harmless, but the reality is that it can cause a huge headache. This is because when someone uses someone else's card and does not pay correctly, the person who lent the card may end up having to bear all the expenses. This is exactly what happened to a woman in Ceará, who was fined R$180 by the courts.
The woman began using a credit card borrowed from a friend with the promise of making regular payments. At first, everything was going well, but over time, payments stopped, and the cardholder, of course, became responsible for the debts. With an accumulated debt, the friend decided to take legal action, and the judge ruled that the cardholder had 15 days to pay everything or have her assets seized.
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How was this fine of R$180 determined?
A fine imposed by the courts is a warning to those who think that using the borrowed credit card it is a practice without consequences. In the case cited, the amount of R$180 is the result of accumulated purchases and interest rates that skyrocketed, in addition to the penalties imposed for late payment.
What many people don't know is that if they fail to pay a debt made with someone else's card, the cardholder will be the one who will be charged initially. If the debt remains unresolved, the person who used the card may be sued, have their assets seized and even face a hefty fine.
The impact of the new credit card law
Starting with 2024, a new law promises to bring a little more peace of mind to consumers who face difficulties with revolving credit, which is known for having exorbitant interest rates in Brazil. In 2023, for example, interest rates on this type of loan reached a staggering 431,6% per year. The good news is that, with the new law, interest rates on revolving credit will no longer be able to exceed twice the original debt.
This means that if someone takes on a debt of R$100 on revolving credit, the maximum amount that person will pay will be R$200, including all interest and fees. This change is seen as a way to protect consumers, especially retirees, who are often more vulnerable to these types of debts.
How to Avoid Falling into Traps When Borrowing Credit Cards
If you are thinking about using a borrowed credit card, it is important to think twice. In addition to the risk of causing financial problems for the person who lent the card,, you could end up facing lawsuits and hefty fines. Here are some tips to avoid falling into these traps:
Avoid using other people's credit cards: If your credit has been denied, try to understand the reason and try to resolve your financial situation through other means, such as negotiating directly with the bank.
Be careful with accumulated debts: If you have ever used one borrowed credit card, make sure you pay your debts on time. The longer you wait, the more your debt can grow, especially with the high interest rates in Brazil.
Keep an eye on changes to credit rules: The new law on revolving credit may be an ally, but it does not mean that using a credit card has become less risky. Always plan your finances to avoid surprises.
Using a borrowed credit card can have serious consequences
Using a borrowed credit card may seem like a temporary solution, but the consequences can be serious.. With the possibility of facing a fine of up to R$180 thousand and still have your assets seized, it is essential to think carefully before making this decision. The new law that comes into effect in 2024 brings important changes to revolving credit, but it is always better to avoid debt than to rely on these rules to avoid drowning in interest.
Therefore, think twice before borrowing someone's credit card. After all, in the end, the price may be much higher than you imagine.
Comment here what you think about using the borrowed credit card and this story of fine of R$ 180 thousand! Have you ever been through a similar situation or do you know someone who has faced problems with credit card debt?
