Friday 17 September 2021

Limit On Consumer Credit Rates Proposed

Paying the bills


Chile reopens borders to visitors ahead of summer tourism season

Q24N - SANTIAGO (Reuters) - Chile announced plans to...

Chile among the 5 countries that are opening up and living with Covid

Q REPORTS - London (CNN) - More than 18...

Why buy a flat in Dubai

Investing and getting a good income is one of...

Today’s Vehicle Restriction September 17: Plates ending in “9 & 0” CANNOT circulate

QCOSTARICA - For today, Friday, September 17, vehicles with...

Italy to bring in vaccine passes for entire workforce

ROME — Italy is to require the country's entire...

Number of minors victims of the pandemic in Costa Rica reaches 19

QCOSTARICA - A baby of one month and 20...

CCSS activates ‘vacunatón’ against covid-19

QCOSTARICA - Starting this Friday, and for 10 days,...
Paying the bills



Excessive interest rates in Costa Rica may soon be a thing of the past, with an ambitious plan by the Ministry of the Economy preventing banks and retailers from abusing consumer rights by charging excessive interest.

Consumer credit interest in Costa Rica, particularly credit card and retail store credit, can range from 40%  to 62% per year.

- Advertisement -

On Monday, the government sent a bill to the Legislature to limit interest rates of banks and stores, on credit both in colones and dollars.

The bill, is approved by legislators, would forbid credit when the interest rate charged is more than double the average rate over the past three months in the regulated national financial system.

For example, the average interest rate over the past three months for credit in colones was 17.39%, meaning the maximum rate allowed if the bill were already approved would currently be 34.77%, the Economy Ministry said in a statement. The average rate for loans in dollars over the past three months was 10.90%, and would be capped at 21.80% if the bill were in effect now.

The Central Bank (Banco Central de Costa Rica)  would publish the interest rate limit for credit every three months.

Costa Rica scrapped limits on dollar loans in July as economic turbulence abroad and weaker harvests pushed the Central Bank to cut the country’s growth outlook sharply.

Last January, caps on lending were announced in a bid to curb a credit boom driven partly by the gap between local and U.S. interest rates, along with capital controls on foreign investment, which are still before the Legislative Assembly.

- Advertisement -

- Advertisement -
Paying the bills
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

[BLOG] Costa Rican Electric Company – General Maintenance Procedures

During my fifteen plus years of living in Costa Rica, I...

Heliport, Money and Weapons in Costa Rica

Following reports by residents of Las Asturias de Pococí about flyovers...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.