Piauí Court of Justice Convicts Bank for Abusive Interest Rates: Know Your Rights

Did you know that it is possible to challenge unfair charges and abusive practices carried out by financial institutions? A recent decision by the Piauí Court of Justice reaffirmed consumer rights by convicting a bank for applying abusive interest rates to a contract. This victory is not only for the injured consumer, but for all who believe in justice as a tool for balance and protection.

The Piauí Court of Justice analyzed the complaint of a consumer who, when taking out a bank loan, was surprised by interest rates much higher than those practiced in the market. The customer alleged that he was not adequately informed about the amounts charged, much less received a copy or second copy of the contract, characterizing an abusive practice and violation of the duty to provide information. The decision was handed down by the 3rd Specialized Civil Chamber, by Judge RICARDO GENTIL EULÁLIO DANTAS, in the CIVIL APPEAL proceedings (198) - 0800377-85.2021.8.18.0078. In the judgment, the Judge highlighted that:

"In the same way, in this case, the failure to provide the service is clear, due to the imposition of abusive interest rates on the consumer in the case at hand.  Therefore, the moral damage is configured in re ipsa, deriving, inexorably, from the offensive fact itself, in such a way that, once this fact is proven, ipso facto, the moral damage is demonstrated, in a typical natural presumption, a presumption hominis or facti, which arises from the rules of common experience. Thus, to measure the quantum, I note that in similar cases the amount of R$5,000.00 is set with common sense and prudent discretion by the judge. […]”.

In another case analyzed by the Court, the Consumer took out a loan for R$6,000.00 (six thousand reais), but the final value of the debt easily rose to the amount of R$ 16,038.00 (sixteen thousand and thirty-eight reais), more than double the value of the loan:

"CIVIL APPEAL. BANK LOAN. ABUSIVE CLAUSE. EXORBITANT VALUE. NEGLIGENT CONDUCT BY THE BANKING INSTITUTION. MORAL DAMAGE. APPEAL ADMITTED 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 debt amounted to R$16,038.00 (sixteen thousand and thirty-eight reais), more than double the value of the loan. The amount charged by the defendant bank is therefore shown to be 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 defendant's remuneration and the negligent attitude of denying or omitting clarification regarding the amounts assigned. 4. The appeal is admitted and dismissed. (TJPI | Civil Appeal No. 2015.0001.000172-0 | Rapporteur: Judge Fernando Carvalho Mendes | 1st Specialized Civil Chamber | Judgment Date: 08/28/2018)".

In the ruling, the court highlighted that the application of abusive interest rates violates the principles of good faith and transparency, provided for in the Consumer Protection Code. The decision resulted in the bank being found guilty, obliging it to return amounts charged unduly and to apply rates compatible with those permitted by the Central Bank, and also ordered the financial institution to pay compensation in favor of the victim.

What the Law says about abusive practices

The Consumer Protection Code protects citizens against unfair practices by companies. See the main applicable points:

- Article 39, V: The supplier is prohibited from demanding a manifestly excessive advantage from the consumer.

- Article 42, sole paragraph: In the event of a charge undue, the consumer has the right to a refund of double the amount paid, plus interest and monetary correction.

- Article 6, III: The consumer has the right to clear and adequate information about the products and services offered.

How to identify and act against abusive interest

1. Analyze the contract: Check the interest rates charged and compare them with the values ​​published by the Central Bank.

2. Demand clear information: The bank has the duty to explain all charges in a transparent manner.

3. Seek legal help: If you identify irregularities, seek a lawyer or Procon to assess the possibility of legal challenge.

Practical example

Suppose you take out a personal loan for R$10,000, but, upon reviewing the contract, you realize that the interest exceeds the regulated limits. After trying to resolve the issue directly with the bank and not getting a response, you can file a lawsuit, requesting a review of the fees and, if necessary, the refund of amounts charged unduly, as happened in the case judged by the TJPI.

Conclusion

The decision of the Court of Justice of Piauí is proof that consumers are not helpless in the face of abusive practices. Being informed about your rights and fighting for them is essential to building a fairer society. Don't let ignorance be an obstacle: know your rights and make your voice heard.

Antônio Barbosa Lima O’Brien Júnior, Lawyer specializing in Consumer Law, Civil Law and Civil Procedure. For more information, contact us today to learn more about how we can help you invest safely in Brazil: +55 86 9 9988 - 9668.

LATTES CV

Graduated in Law from Faculdade Maurício de Nassau - FAP Unit (2017). Graduated in Portuguese and English Literature from Centro Universitário ETEP (2023). Bachelor's Degree in Portuguese and Spanish Languages ​​from IBRA College in Brasília (2024). Has a Technical Course in Buildings from the Technological Center for Vocational Education of Maranhão - CTEPMA (2024). Has a Postgraduate Degree in Consumer Law, Civil and Procedural Law, and Public Law from Legale College (2021). Postgraduate Degree in Higher Education Teaching from Cândido Mendes University - Pró Saber Institute. Postgraduate Degree in Women's Law; Pension Planning; Asset, Family and Succession Planning, all from Legale College. Lawyer regularly registered with the Brazilian Bar Association under number 16650. Address to access this CV: https://lattes.cnpq.br/4424387435868424

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: August 28, 2018.

BRAZIL. Court of Justice of Piauí. 3rd Specialized Civil Chamber. Civil Appeal No. 0800377-85.2021.8.18.0078. Appellant: Antonia Maria da Conceicao. Respondent: Crefisa SA Credito Financing and Investments. Rapporteur: Justice Ricardo Gentil Eulálio Dantas. Judgment of March 27, 2024.