30. Usury Law

The Usury Law, officially called Decree 22.626/1933, is a Brazilian legislation that aims to protect consumers from abusive interest practices. This law is particularly relevant in the banking sector, where interest rates can be extremely high. Understanding and properly applying this law are therefore essential for anyone preparing for a public tender in the banking field.

The Usury Law was created during the government of Getúlio Vargas, with the aim of regulating interest rates and preventing consumer exploitation. The law establishes that it is prohibited to charge interest higher than twice the legal rate, which is currently 1% per month. Therefore, the maximum interest rate allowed by the Usury Law is 2% per month.

In addition, the Usury Law also prohibits capitalization of interest, also known as "interest on interest". This means that interest cannot be calculated on the interest already charged, but only on the principal. This is a common practice in many loans and financing, and the Usury Law was created to protect consumers from this practice.

However, the application of the Usury Law in the banking sector is a matter of debate. Some argue that the law does not apply to banks as they are regulated by the Central Bank, which has the authority to set interest rates. Others argue that the law applies to all financial institutions, including banks.

In 1999, the Federal Supreme Court (STF) ruled that the Usury Law does not apply to financial institutions. The decision was based on the argument that the law was created before the existence of the modern financial system and therefore could not have foreseen current lending and financing practices.

Despite this decision, the Usury Law is still applied in some cases. For example, the law is often used in cases of loans between individuals, where the interest rate can be considered abusive. In addition, the law is also applied in cases of loans to companies, where the interest rate may be considered excessive.

For candidates for public tenders in the banking area, it is important to understand the Usury Law and how it is applied. While the law may not directly apply to banks, it is still relevant to understanding lending and financing practices and protecting consumers.

In summary, the Usury Act is important legislation that aims to protect consumers from abusive interest practices. Although its application in the banking sector is debated, the law is still relevant to understanding lending and financing practices. Therefore, anyone preparing for a public tender in the banking field should have a good understanding of this law.

Finally, it is important to remember that the Usury Act is just one of many laws and regulations that govern the banking industry. To succeed in a public tender in this area, it is necessary to have a comprehensive knowledge of all relevant laws and regulations, as well as a clear understanding of banking and financial practices.

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