Court reinforces the duty of transparency in financial contracts and curbs abusive practices in revolving credit operations

The São Paulo State Court of Justice (TJ/SP) upheld a decision ordering a bank to reimburse a customer for charging abusive interest rates on a credit card installment plan. Under the Brazilian Consumer Protection Code (Article 42, sole paragraph), the bank must return twice the amount unduly charged, plus monetary correction and legal interest.

In this case, the customer had agreed to an installment plan for their credit card bill but was not properly informed of the effective interest rate applied to the transaction. A court-appointed expert found that the rates exceeded market standards and were not clearly disclosed in the contract or on the billing statements sent to the consumer.

Justice Ana Maria Baldy, the case rapporteur, emphasized that the lack of transparency violated principles of good faith and the right to clear information — core elements of consumer relations. The decision underscored that banks, as providers of essential and complex services, have a legal obligation to ensure clarity in contractual terms, especially when financial charges are involved.

The court’s ruling not only mandated the double reimbursement but also strengthened legal precedent in favor of consumers, particularly in cases involving unclear or overly burdensome banking practices.

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Source: https://migalhas.com.br