Charging exorbitant interest constitutes illicit and inappropriate conduct

It turns out that for some time now the Court of Justice of Piauí has ​​been dealing with cases of Abusive Interest and curbing such practice, the Court points out that the charging of exorbitant interest without any plausible justification, through disproportionate discounts on social security benefits, wages or salaries and the negligent attitude of denying or omitting clarification regarding the amounts assigned, clearly violating the rights of the consumer, constitutes illicit and inappropriate conduct. In another case analyzed by the Court, the Consumer took out a loan assigned for R$6,000.00 (six thousand reais), but the final amount of the debt easily rose to the amount of R$16,038.00 (sixteen thousand and thirty-eight reais), more than double the amount of the loan:

"CIVIL APPEAL. BANK LOAN. ABUSIVE CLAUSE. EXORBITANT VALUE. NEGLIGENT CONDUCT BY THE BANKING INSTITUTION. MORAL DAMAGE. APPEAL KNOWN AND DISMISSED. 1. The Superior Court of Justice already has a consolidated understanding regarding the application of the Consumer Defense Code to financial institutions. 2. The value of the payroll loan was R$6,000.00 (six thousand reais) as stated in the report and the value of the debt rose to the amount of R$16,038.00 (sixteen thousand and thirty-eight reais). 16,038.00 (sixteen thousand and thirty-eight reais), more than twice the value of the loan. The amount charged by the defendant bank is therefore harmful and disproportionate, in clear violation of consumer rights. 3. The appellant's unlawful conduct is configured in two actions: the abusive and exorbitant charge without any plausible justification through disproportionate discounts on the appellee's remuneration and the negligent attitude of denying or omitting clarification regarding the amounts assigned. 4. Appeal accepted and dismissed. (TJPI | Civil Appeal No. 2015.0001.000172-0 | Rapporteur: Judge Fernando Carvalho Mendes | 1st Specialized Civil Chamber | Judgment Date: 08/28/2018)". (Our emphasis).

It is important to note that, in many cases, the payment method imposed by the Banks is payments by debiting the account on the same date on which they receive their social security benefits, salaries or wages, leaving no room for any possibility of default. It is understood that it would not justify the practice of such high interest rates considering the existence of a real guarantee for its fulfillment and the few risks of the business.

Follow the posts on the topic "Abusive Interest" which was divided into 3 (three) parts, with the next publication on 07/22/2024 at 12:00 p.m. Stay tuned...

REFERENCES

BRAZIL. Law No. 10,406 of January 10, 2002. Institutes the Civil Code. Official Gazette of the Union: section 1, Brasília, DF, year 139, no. 8, p.

BRAZIL. Court of Justice of Piauí. Civil Appeal No. 2015.0001.000172-0 | Rapporteur: Judge Fernando Carvalho Mendes. 1st Specialized Civil Chamber. Judgment Date: 08/28/2018.